The IRA Charitable Rollover has existed since it was first included in the Pension Protection Act of 2006 (PPA). But a new law passed by Congress and signed by the President last week now makes the charitable rollover a permanent law.
The legislation, the Protecting Americans from Tax Hikes (PATH) Act, is a greater benefit to our seniors. If you are age 70½ or older you can transfer up to $100,000 annually from your IRA accounts directly to charity without first having to recognize the distribution as income.
While it has broad appeal, the law still has limitations. You must be 70½ or older. The amount of the gift you give to charity is limited to $100,000. And you are specifically not permitted to make charitable rollovers to donor-advised funds, supporting organizations, and private foundations.
But if you do fit into those categories, and you have not taken advantage of the charitable rollover in 2015, there’s still time. If there’s a group or organization you have in mind – possibly a church or synagogue – this is a great opportunity.