In 2014 you can support The Bishop Hill Heritage Association and save on the amount you pay the IRS in income tax. Congress has reauthorized charitable transfers from individual retirement accounts for 2014. Now, IRA holders who are 70½ and older need to move quickly if they want to make such gifts, because the provision expires again as of Jan. 1, 2015.
The IRA charitable transfer allows account owners who are 70½ and older to donate up to $100,000 of IRA assets to one or more qualified charities. The financial institution holding the account transfers the donation directly to the specified charity, bypassing the owner.
General guidance on this provision:
- The taxpayer must be 70 ½ or older at the time of the transfer.
- All of part of the taxpayer’s required minimum distribution (RMD) may be included.
- Transfers are limited to $100,000 per taxpayer.
- No charitable deduction is allowed for a charitable transfer that is excluded from income.
If you have reached age 70 ½ and are faced with taking a required minimum distribution from your IRA, please consider a charitable transfer to The Bishop Hill Heritage Association. Your tax professional can answer any additional questions you may have.