IRA Rollover and Tax Extenders

The Charitable IRA Rollover Bill has passed and was sent to the President for his signature. It is expected that the President will sign the bill into law as soon as it is received at the White House.  Each IRA owner who is 70 1/2 or older may make a transfer of up to $100,000 per year to a qualified charity. The IRA charitable rollover is tax-free and not included in adjusted gross income.   The provision is retroactive to such charitable rollover transactions since January 1, 2014 and covers such transfers through December 31, 2014.   Unlike the prior two retroactive extensions of the rollover, there is no provision allowing for January 2015 qualified rollovers to count for calendar year 2014 or for qualified rollover of funds that were received directly first by the IRA holder. Because the legislation is retroactive to January 1, 2014, any “qualified charitable distribution” (directly from the IRA trustee payable to the charity from IRAs of those at least 70 1/2) that has already taken place this calendar year or takes place by December 31, 2014 will qualify for IRA Charitable Rollover treatment.

Please call Columbus Jewish Foundation CEO Jackie Jacobs at 614-338-2365 with questions or if the Foundation can be of assistance.

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