The Protecting Americans from Tax Hikes (PATH) Act of 2015, which was passed by Congress and signed by President Obama in December 2015, permanently extended three charitable giving incentives that had expired in January 2015. One of those incentives is the "IRA charitable rollover."
The IRA charitable rollover is found in Section 408(d)(8) of the Internal Revenue Code and allows individuals who have reached age 70½ to donate up to $100,000 annually to "eligible charitable organizations" directly from their individual retirement account (IRA) without treating the distribution as taxable income. Treating the direct distribution of IRA funds to charity as a pure exclusion from income has many advantages:
Only distributions to eligible charitable organizations (generally speaking, those that receive broad public support) are permitted. Gifts to donor-advised funds and private foundations (other than private operating foundations) will not qualify for the IRA charitable rollover.
Donors should keep in mind that the distribution should be made by the IRA custodian directly to a charity. If the distribution is made to the donor and subsequently distributed to a charity, the benefits of treating the distribution as an exclusion rather than a deduction as listed above do not apply. Finally, donors should be sure to obtain an acknowledgment letter from the charitable recipient in order to make use of the exclusion.
Day Pitney Press Release
Day Pitney Press Release
Day Pitney has pledged $5,000 to the University of Miami School of Law's Ray H. Pearson Memorial Scholarship Fund.
Day Pitney Press Release
Day Pitney Press Release
Day Pitney Press Release
Firm Ranked Tier 1 Nationally for Energy Law and Trusts and Estates Law
On October 3, Day Pitney LLP and the Association of Corporate Counsel (ACC), Northeast Chapter – Women's Initiative co-presented a program, "The Power of Women with Wealth," held at Day Pitney's Boston office.
Jennifer Pagnillo and Emily Belfer authored an article, "Disaster Relief: Guidance for Donors and Charities," which appeared in the July/August issue of Taxation of Exempts, published by Thomson Reuters.
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