Legislation enacted in December of 2015 (The Trade Facilitation and Trade Enforcement Act of 2015) permanently allows you to make tax-free charitable gifts from your IRA. Under this legislation, qualified donors may make outright gifts of up to $100,000 to charity from the IRA, which avoids taxation on the distribution. You do not report this as income so you pay no tax on this gift. The transfer generates neither taxable income nor a tax deduction. And your gifts go towards all or part of your minimum distribution requirement. You will benefit even if you do not itemize your tax deductions.
The requirements for a 'qualified charitable distribution' are:
- Donor must be 70 ½ or older at the time of transfer.
- The gifts must come directly to Timon from your IRA account – either Roth or traditional – in order to avoid paying taxes.
- The gift must be outright. It may not be used to fund a gift annuity, charitable, remainder trust, donor-advised fund, or private foundation.
- Donor may not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
To make your IRA gift contact your IRA provider. You may need to provide them with Timon's Tax ID, which is 16-1075384.
Please contact Michelle Patterson, Advancement Officer, (716) 826-3610 x246, for more information.