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Old Pueblo Legal Observer

IRA Charitable Rollover Extended

Posted by Elizabeth D. Spilotro | Dec 22, 2014 | 0 Comments

In the spirit of “nothing like the last minute”, late last week Congress extended the IRA Charitable Rollover provision for 2014. The rollover permits IRA beneficiaries who are over age 70 ½ to redirect up to $100,000 from their individual retirement account directly to a qualified charity (generally, any public charity; private donor-advised funds do not qualify) tax-free. The taxpayer will not receive any deduction for this charitable gift, but instead will not realize the income tax associated with distribution of those funds to the taxpayer. Individuals may consider redirecting up to $100,000 of their required minimum distribution to charity, or use the rollover provision as an opportunity to reduce the size of a large IRA that may carry significant income and estate tax implications for the taxpayer. To qualify as a charitable rollover, the beneficiary must direct the IRA trustee to make distribution directly to the qualified charity, not pass the funds through the hands of the taxpayer.

For more information about this and other retroactive tax planning opportunities, click here or contact your tax advisor.

About the Author

Elizabeth D. Spilotro

Ms. Spilotro practices in the area of estate planning, charitable planning, estate settlement and probate, and trust administration, and also handles adoption cases. Ms. Spilotro advises individuals, couples, blended families, and unmarried couples in committed relationships to plan for incapacity, care for loved ones with special needs, and provide for family and beloved causes after death. In her adoption work, she counsels prospective birthparents on their options for adoption placement, facilitates selection of prospective adoptive parents, negotiates post-placement contact, and handles all legal aspects of adoption finalization.


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