IRA Donation Exemption Deadline is Approaching
Last year, legislation was passed that contained a remarkable benefit for those with IRAs. This benefit will expire at the end of this year, unless Congress and the administration agree on an extension.
In the past, anyone wishing to make a charitable contribution from their IRA had to withdraw it as ordinary income, pay a tax and contribute it, for which they got an offsetting deduction. The legislation made it possible to make a direct contribution from their IRA to any 501 (c) 3 organization with no tax effect – income or deduction.
The benefit is that those who don’t need all the income from their IRA yet are require to pay tax on it as part or all of their minimum distribution, can now contribute the income to charity and have it count as part of their minimum distribution. They will have saved the tax on money they don’t really need.
The maximum contribution is $100,000 and it can’t be made as a split interest gift or to a supporting organization or donor advised fund. For more information please contact Dick Lamport, Breathe California’s planned giving advisor at 415-970-2380.