Tax-Free Distributions to Charity from IRAs Now Available

Congress has just extended the IRA charitable rollover provisions for 2015 and beyond. For those who are 70½ or older, any amount up to $100,000 can be distributed tax-free from your Individual Retirement Account (IRA) to Swedish Covenant Hospital or your other favorite charities through December 31, 2015—and because Congress did not include an expiration date on these provisions, similar distributions can be made in future years as well. This amount can count toward your required minimum distribution for the year in which the distribution is made. Although these distributions are not deductible as charitable contributions on your income tax return, they impact your taxes because they are not treated as taxable income to you.

Here’s How It Works:

  • You must be 70½ or older at the time of distribution.
  • You may distribute any amount up to $100,000 in a calendar year to charity, as long it is completed by December 31 of the year in which you intend to make the charitable distribution.
  • Your IRA administrator must make the distribution directly to the charity, or you may write a check payable to the charity from your IRA checkbook.

 

Certain restrictions and requirements must be followed when making this type of gift. Before proceeding, you should also consult with your tax advisor to discuss your particular situation including any impact of your state’s tax laws. For more information, click here or contact Swedish Covenant Hospital Foundation at 773-293-8877 or foundation@swedishcovenant.org.

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