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IRA Rollover Extension for 2014

On Dec. 16, 2014, the U.S. Senate passed HR 5771 which includes a one year extension of expired tax provisions retroactive to Jan. 1, 2014. This reauthorizes the IRA charitable rollover through Dec. 31, 2014, pending President Obama's signature.

The principal rules for direct transfers from a IRA to a qualified public charity, such as Pension Fund's Ministerial Relief and Assistance, are that the IRA owner must be 70½ or older and that the transfer is for no more than $100,000 each year. The amount transferred will fulfill all or part of the required minimum distribution. It must be to a public charity either outright or for a specific purpose. The transfer is made directly from a trustee to the charitable organization.

For example, in 2014 you can authorize a direct transfer of the minimum distribution required from your IRA (such as Pension Fund's Legacy IRA) to a charity (such as Pension Fund's Ministerial Relief and Assistance), and the minimum distribution will not be included in your gross income. Note that since there is no income tax inclusion, there is no charitable income tax deduction either. The provision expires Dec. 31, 2014, and no one is sure if Congress will discuss an extension next year.

If you wish to make an IRA distribution to a charity for 2014, you will need to have your IRA trustee or broker send your funds directly to the charity no later than Dec. 31, 2014. If you have any questions regarding making a donation from an IRA, call Ruth Chavez Wallace (Pension Fund VP of Development) directly at 1.866.495.7322 to discuss your options.