Congress has extended a tax break on charitable donations from individual donor's retirement accounts retroactively to January 1, 2014. The IRA charitable rollover allows individuals 70½ and older to donate up to $100,000 in IRA assets to a qualified charitable organization(s). The IRA charitable rollover is tax-free and not included in a donor's adjusted gross income.
Time is of the essence if you want to receive benefits for your 2014 tax year. The provision will expire on December 31, 2014 and it is unknown whether it will be extended into the coming year.
This retroactive extension is important to anyone who donates a portion of their IRA distribution each year. A gift to a charitable organization from an individual's IRA can count toward the annual Required Minimum Distribution (RMD) required by the IRS. Moreover, by reducing taxable income, the provision can help one avoid or reduce tax implications. Consult your financial advisor about your IRA and RMD.
The Porter County Community Foundation is a qualified charity and the amount can be directed to any fund held by the Foundation other than a donor advised fund. If you decide to distribute a charitable gift from your IRA, ensure that your IRA's custodian transfers it directly from the IRA to your designated charity.