IRA Charitable Rollover Permanently Extended!


Congress has permanently extended a popular tax-advantaged giving opportunity. The law allows individuals who are age 70½ or older to make gifts of up to $100,000 directly from their IRA account to one or more qualified charities, without paying federal income tax on the withdrawal. The extension was made retroactive to January 1, 2015. 


Donors who wish to make a gift to benefit Jewish Federation & Family Services, or who are fulfilling an existing pledge, may want to make a Qualified Charitable Distribution. 


Here are the specifics:

 

  • Donors must be age 70½ or older at the time the gift is made.
  • Only traditional IRAs are eligible.
  • Donors must request a direct transfer of funds from their plan administrator to a qualified public charity; funds cannot be withdrawn prior to a gift or the tax benefit is nullified.
  • Gifts cannot be made to a private foundation or to a donor advised fund.
  • Gifts cannot be used to fund a gift annuity or charitable remainder trust.
  • Each donor may give up to $100,000 per year. For couples, each spouse can give up to $100,000. 
  • Distributions made under this law can be used to satisfy the donor's required minimum distribution (RMD). The rollover allows for a charitable gift to fulfill the RMD without adding to tax liability.


To make a gift to JFFS from an IRA, contact your IRA plan administrator and request a direct Qualified Charitable Distribution from the IRA account to Jewish Federation & Family Services, Orange County, a 501(c)(3) organization, with Tax ID number 95-2407026. Checks should be mailed directly to Jewish Federation & Family Services, Orange County, IRA Gift Processing, 1 Federation Way, Suite 210, Irvine CA  92603.


Please contact Chelle Friedman, Planned Giving Director, or Andrew Breslow, CFO, at 949.435.3484 to inform JFFS of a gift or for resources and information regarding designated gifts and other information that you can pass on to a financial advisor. 


Note: Jewish Federation & Family Services, Orange County, cannot give tax or legal advice. Please consult your own professional tax advisor about the best way to take advantage of this opportunity.