For those aged 70½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.
On December 18, Congress passed legislation and the president signed into law the provision to retroactively extend the charitable IRA rollover for 2015 and make the provision permanent for future years.
A total of up to $100,000 can be transferred directly from traditional or Roth IRAs to one or more qualified charities such as The Alaska Community Foundation free from federal income tax each year. Amounts given in this way count toward required IRA minimum withdrawal amounts for the year of the gift.
To make such gifts, it is important to not withdraw funds prior to a gift, but have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.
You might want to consider doubling your impact by making an IRA rollover gift in 2015 and another IRA rollover gift in early 2016.
Check with us, your IRA administrator or your tax advisor for more information.