IRA Gift Provision
The Protecting Americans from Tax Hikes (PATH) Act of 2015 makes permanent the IRA Charitable Rollover provision that has come and gone several times over the past 10 years. A direct distribution from an IRA can be a great way to provide a charitable gift.
BENEFITS TO THE DONOR
- Allows the donor to avoid receiving an IRA distribution as taxable income.
- May lower the donor’s income tax rate.
- The gift counts toward the Required Minimum Distribution (RMD).
- The donor must be age 70½ or older.
- Gifts are allowed up to $100,000.
- The gift must be a direct distribution from the IRA to the charitable organization.
- The transfer generates neither taxable income nor a tax deduction.
- The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund, or private foundation.
- You may not receive any goods or services in return for the gift.