Special tax-Free IRA Gifts

Grandparents with grandchildFor 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 retroactively extending the charitable IRA rollover for 2015 and which makes this 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 Starr Commonwealth free from federal income tax each year. There may also be state income tax savings. 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.

Check with us, your IRA administrator or your tax advisor for more information.

Contact Sherie Veramay at veramays@starr.org or 517-630-2312 to discuss your tax-free gift.

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