IRA Charitable Rollover

IRA Charitable Rollover Law is now permanent!

 

The Protecting Americans from Tax Hikes (PATH) Act was passed by Congress and signed into permanent law by the President on December 18, 2015.  This act makes it possible to make tax-favored charitable gifts from traditional and Roth IRA account for gifts completed in 2015 and future years.


The IRA Charitable Rollover tax incentive allows individuals aged 70 1/2 and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) and Roth IRAs to public charities, such as Friends of Woodstock School, without having to count the distributions as taxable income.

 

In Summary:

 

  • The IRA account holder must be at least 70 ½ at the time of distribution.
  • The gift must be made on or before December 31.
  • The distribution must be made directly from the IRA custodian/trustee to the charity.
  • The gift is limited to $100,000 per donor per year. If your spouse has his/her own IRA, each of you may donate up to $100,000 from your respective accounts.
  • The gift must be made outright to a qualifying public charity, such as FWS, and not to a donor advised fund, supporting organization or private foundation.

For additional information, please contact your IRA administrator or advisors, or David Wheeler at Friends of Woodstock School, (425) 353-8422,  dwheeler@fwsfoundation.org

 

Friends of Woodstock School is providing this information to you solely as an educational resource and not as a solicitation, offer, or legal advice.  We urge you to seek the advice of your professional tax advisor, attorney, and/or financial planner to make certain that a contemplated gift fits well into your overall circumstances and planning.