ALERT: Act Fast for IRA Charitable Rollovers in 2015

Great news! The President made permanent the IRA charitable rollover as part of the latest tax bill signed late last week. But…

YOU MUST ACT FAST! To leverage the tax benefits in 2015, the IRA rollover must be transferred by December 31!

The IRA charitable rollover allows individuals age 70 ½ or older to make a rollover gift of up to $100,000 from their IRA to one or more qualifying charitable organizations. Charitable deductions are limited to 50% of a taxpayer’s adjusted gross income for a calendar (tax) year. Taxpayers that make significant charitable gifts will benefit from the rollover because this gift is excluded from the charitable deduction percentage limit.

Donations are excluded from the taxpayer’s income and will count as part of the IRA owner’s required annual withdrawal. The rollover must be distributed directly from the IRA custodian to the designated non-profit. (Rollover contributions are limited to specific qualifying charities – churches are eligible to receive these gifts.)

Here are the details you need to share with those in the qualifying age bracket:

• The provision allows someone over 70 1/2 years of age to donate up to $100,000 of their IRA assets to a charitable organization.
• The donor’s contribution can satisfy the required minimum distribution for the year and does not have to be counted as taxable income.
• Those who qualify to make this gift need to seek counsel from their tax attorney or licensed financial planner for the details.

I realize this is last minute, but you would be wise to make those in your church who meet the age qualification aware of this opportunity to support your ministry in this way.

Make it simple – just forward this message to your seniors as part of a personal email or letter you send them to raise their awareness of this opportunity. Also include a link to an email address or phone number of a tax professional in your church who would be willing to answer their questions. If you are part of a mainline denomination, your state denominational foundation office is another great resource. If you do not have a professional at hand, I recommend linking them to the great people at the National Christian Foundation.