For individuals 70 ½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.
Congress passed legislation on Friday, December 18, 2015, which retroactively extends the charitable IRA rollover for 2015 and makes this provision permanent for future years.
You may transfer up to $100,000 directly from your IRA to the PSPCA tax-free. To qualify for a 2015 gift, the transfer from your IRA to PSPCA must be completed by December 31, 2015.
How to Make a Direct-Rollover to PSPCA:
- You must be age 70 ½ or older when the gift is made.
- The gift must come from a traditional IRA or Roth IRA account, 401(k), 403(b) SEP, IRA accounts. Other retirement accounts do not qualify.
- The gift must come directly from your IRA administrator to the PSPCA. Total IRA charitable rollovers in any one year cannot exceed $100,000.
- The IRA rollover gift can count toward your Required Minimum Distribution (RMD), if you have NOT already taken your RMD for the year in which you made your gift.
- The gift from your IRA will not be available as an income tax charitable deduction.
- The gift from your IRA will be excluded from income.
You should not withdraw funds prior to a gift, rather have the gift amount distributed directly from an IRA to the PSCPA. If you have check writing privileges on your retirement accounts, this method may be the most efficient way to make a gift from an IRA.
If you have questions, please contact your IRA administrator, or contact Patti Mecca at the PSPCA at firstname.lastname@example.org or 267-463-2317.