IRA Charitable Rollover Gifts 2014 Tax Year

The Tax Increase Prevention Act of 2014 was signed into law by the president on December 19, 2014, extending the IRA charitable rollover through December 31, 2014.

Among the provisions of the bill is an exclusion from gross income for income tax purposes of up to $100,000 (per IRA account owner) for “qualified charitable distributions” from an Individual Retirement Account (IRA). While such a gift directly from your IRA will not increase your gross taxable income, you also may not claim a charitable deduction. The distribution will count toward an individual’s Required Minimum Distribution (RMD). The statutory requirements for a “qualified charitable distribution” are as follows (for more information see http://www.irs.gov/Retirement-Plans/Charitable-Donations-from-IRAs) :

  • The distribution must be made from an IRA (other retirement accounts are not eligible).
  • The recipient must be an eligible charitable organization.
  • The IRA’s owner must be at least age 70½.
  • The distribution must be made directly to the charity by December 31, 2014. (See below.)
  • The distribution must otherwise be fully deductible as a charitable contribution.
  • The distribution must otherwise be included in gross income.

Frequently Asked Questions

What are the deadlines to complete a gift? Distributions by wire transfer must be received in New Hampshire Lakes Association’s account by December 31, 2014. Distributions by check must have a postmark (on the envelope) no later than December 31, 2014. Because of the high volume of year-end gifts, allow extra time for processing.
Sample transfer instructions by check or by wire transfer may be found here.

Will there be an opportunity to make IRA rollovers in early 2015 retroactive to the 2014 tax year, as was done in previous years? No. Eligible gifts for 2014 must be received or postmarked by December 31, 2014.

May I make a gift from my IRA if I have already taken my required minimum distribution (RMD)?Yes. You can exclude up to $100,000 (per IRA account owner) from gross income for qualified charitable donations. The donation counts toward your RMD but is not limited by your RMD.

May I contribute more than $100,000 to a qualified charity from an IRA? Yes, however, the law limits the exclusion from gross income to $100,000. Charitable contributions from an IRA in excess of the $100,000 must follow the general rules pertaining to percentage limitations and itemized contribution reductions.