On December 17, 2010, Congress passed legislation that, among
other items, extends the charitable IRA rollover until December 31,
2011. The charitable IRS rollover allows people aged 70 ½
and older to transfer up to $100,000 of their IRA assets for each
of 2010 and 2011 directly to a qualified public charity. For
married individuals, each spouse can each transfer up to $100,000
per year. The IRA owner will not recognize taxable income and will
not be able to take a deduction for the rollover amount. However,
the rollover will count toward the IRA owner's annual minimum
required distribution.
In order for a contribution to be effective for 2010, the
charitable IRA rollover transfer must be completed on or before
January 31, 2011. For a contribution to be effective in 2011, the
charitable IRA rollover transfer must be completed on or before
December 31, 2011.
Remember that charitable IRA rollovers cannot be made to donor
advised funds, charitable gift annuities, or charitable remainder
trusts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.