CONGRESS PASSES PERMANENT EXTENSION OF CHARITABLE IRA ROLLOVER

CONGRESS PASSES PERMANENT EXTENSION OF CHARITABLE IRA ROLLOVER

By now,  you have probably heard that Congress has passed and the president has signed a permanent extension of the charitable IRA rollover.  It is retroactively effective to January 1, 2015.  As usual,  this gives you very little time to act.

Here are the major requirements:

1. The donor must be 70 1/2.
2. The maximum contribution is $100,000.
3.  The contribution must come from an IRA.  SIMPLE IRAs and SEP-IRAs do not qualify.
4.  The contribution must go directly from the IRA to the charity.  The donor can deliver the check,  but if he is required to endorse the check,  the contribution will not qualify.  The donor must report income and will get a corresponding deduction.
5.   The recipient must be a public charity, and cannot include donor advised funds or supporting organizations.
6.  The contribution must otherwise be fully deductible.   A donor cannot use it to fund a gift annuity or charitable remainder trust, for example.

We strongly recommend that all organizations take advantage of this provision.  If you have any questions, please call at 847-729-3939 or send an e-mail to jprovenza@provenzalaw.com