GIFTS FROM IRAs RESTORED
On December 17, 2010, the President signed into law the Tax Relief,
Unemployment Reauthorization and Job Creation Act of 2010.
Of significance to those who prefer to make charitable contributions
from their IRA is the restoration of the IRA Charitable Rollover. The bill
approves Qualified Charitable Distributions (QCD) from IRAs through December
Of special significance is the fact that the Qualified Charitable Distribution
transfer from the IRA also counts as all or part of the required minimum distribution..
Rules for IRA Charitable Gifts
* Donor must be 701/2 or older.
* Gift can be no more than $100,000 per year. However, in cases where
both spouses have their own IRAs, each may make gifts of up to $100,000
* Transfer must be directly from the IRA custodian to a qualified charitable
* Gift may be made as an unrestricted gift or for a specific purpose
(i.e. scholarship fund).
* Gift may not be made to a donor advised fund or to a supporting organization.
* IRA charitable gifts may not be used to fund Charitable Remainder
Trusts or Charitable Gift Annuities. Transfer must be an outright gift
directly to the charity.
* IRA gifts may not be used for donor benefit gifts such as purchasing
a table at a gala.
* Be certain that the IRA custodian sends the gift directly to the
charitable organization rather than to the IRA owner. Any funds sent
to the IRA
owner will be taxable.
* While there is not a traditional charitable deduction, the gift amount
is taken from the owner’s gross income thus reducing the taxable income
for the year.
Click here for a sample
letter to your IRA Custodian Rrequesting QDC from IRA.
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