Good News for those over age 70 ½ who want to use their IRA assets for charity. In December of 2015 the Qualified Charitable IRA Distribution provision was made permanent. What does this mean? For a donor who is over the age of 70 ½ and has the means to part with some or all of his or her IRA assets up to $100,000, the IRA distribution can be a tax efficient way to benefit an eligible charity. charity. An eligible charity is one such as Surprise Lake Camp (which I am involved with) which is a 501 (c ) 3 organization. This distribution to an eligible charity incurs no income tax as long as it is distributed directly from the IRA to the charitable organization. Of course, because there is no income tax incurred on the transfer, there is also no charitable deduction allowed for it. This benefit may also be used to satisfy the required minimum distribution from an IRA for individuals over ages 70 ½, again as long as it is distributed directly to the eligible charitable organization.
Linda Markowitz 4.14.2016