IRA Rollover Provision Now Permanent

The Protecting Americans from Tax Hikes (PATH) was enacted as law in late 2015 and makes permanent the provision for Qualified Charitable Distributions (QCD’s) from an IRA. This provision allows individuals 70-½ and older to rollover funds directly from their IRA account to the Capital Campaign or Parish – tax-free.

A Qualified Charitable Distribution allows the donor to satisfy their Required Minimum Distribution (MRD), and the amount donated is not recorded as income to the donor on his/her federal tax return. This reduces Adjusted Gross Income, which can be a great advantage to the donor!

All IRA rollovers for 2015 must be made by Dec. 31, 2015.

Listed below are the basic guidelines of the provision:

1. The donor must be age 70-½ or older at the time of the gift.
2. The charitable donation must be distributed directly from a traditional or Roth IRA to the charity.
3. $100,000 is the annual rollover maximum per person.

Please consult with your tax adviser if you are considering an IRA rollover.