Special Tax Bill Includes Extended Help for Charities – Provision Permits Tax-free Charitable Transfers from IRAs

by | Dec 21, 2015 | Professional Advisors

PATHWebsiteOn December 18, Congress passed the PATH Act, which renews and makes permanent the Charitable IRA provision of 2006, making it easier for Americans to give to causes they care about. This provision has the power to help local charities strengthen their communities by allowing individuals to roll over up to $100,000 annually from an Individual Retirement Account (IRA) to charity without being federally taxed.

Millions of Americans continue to save pre-tax dollars in their IRAs. The law allows taxpayers 70 ½ and older to share their wealth by giving retirement savings directly to charity—and bypassing income tax.

This law is important to local charities operating as agents of philanthropy in order to continue to build community and improve social service programs that benefit people every day.

“It is a win-win—for people who would rather give to charity than pay taxes and for the nonprofit organizations they choose to support,” said Georgina Tegart, Community Foundation of Dunn County, Executive Director.

Annually, holders of traditional IRAs who are at least 70½ years old can make direct charitable transfers up to $100,000. Individuals may exclude the amount distributed directly to an eligible charity from their gross income. Community Foundation of Dunn County can help donors execute the transfers and choose from several charitable fund options for their gift. Donor Advised Funds do not qualify for tax-free IRA transfers.

“This really is a powerful opportunity, for anyone interested in establishing a permanent legacy in this community, this is a chance of a lifetime to make the gift of a lifetime.”

For more information on the PATH Act, click HERE or call your Professional Advisor or the Foundation

 

“Like an acorn to a tree, the Community Foundation of Dunn County promotes charitable giving as a way to create a permanent source of capital to benefit and enrich the quality of life in the Dunn County area.”

“Our mission is to advance philanthropy in Dunn County to improve the life of all our citizens; strengthen our nonprofit sector; and give back through strategic grantmaking and support for community projects.”