December 19, 2014
The so-called “charitable IRA rollover provision” has just been reinstated for 2014.
It is uncertain if this provision will be renewed for 2015.
You may need to roll some money out of one of your traditional IRAs or Roth IRAs to meet the annual Minimum Required Distribution (MRD). Here is how a charitable gift IRA rollover works—now that the law has been made retroactive for 2014. If you are 70-1/2 years of age or older at the end of 2014, you may make a distribution from your IRA for up to $100,000 to a church or charity of your choice on or before the end of 2014. The funds must go directly from your IRA trustee payable to the church or charity to qualify for a tax-free rollover.
While there is no charitable deduction for you, the tax-free rollover will count toward your annual MRD, and there is no income to report from deferred gains related to the amount donated.
Please consult with your tax advisor concerning how the rules for charitable IRA rollovers apply to your specific tax situation.
Thankful for all of God's blessings.
Jim Young, President