On December 16, 2014, the Senate passed H.R. 5771, the Tax Increase Prevention Act of 2014, and the President signed the Act into law days after. The Act retroactively renews the charitable rollover provisions that expired at the end of 2013, discussed in our previous post.
The Act permits individuals 70 ½ years of age or older to donate up to $100,000 in 2014 directly to a qualified charitable organization from an IRA without the imposition of income tax on the distribution. Accordingly, if you are at least 70 ½ and have made direct charitable distributions from your IRA in 2014, you will not be taxed on the first $100,000 of such charitable distributions. Alternatively, you have until midnight on December 31, 2014 to make such distributions from your IRA without incurring income tax.
The Act expires on January 1, 2015, and it is unknown whether Congress will act to extend the charitable rollover provision again for 2015.
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.
