Gifts by Retirement Plan Asset

The Tax Increase Prevention Act of 2014, H.R. 5771, was signed into law by the president on December 19, 2014, temporarily extending the popular “IRA Rollover” provision until December 31, 2014. At this point, no 2015 gifts qualify.

But, history repeats itself. If Congress follows its three-year pattern of extending this beneficial tax break late in the year and once again making it retroactive, you may meet the standard qualifications that are not expected to change.

People aged 70 1/2 or older, who own a traditional or Roth IRA, have been allowed to make a charitable gift of up to $100,000, directly from their IRA to qualified charities. SPLC is qualified and your gift to us (including your required minimum distribution) could completely bypass your income for 2015 if the provision is extended.

We recommend that you plan now, before you take your 2015 RMD, and request that your annual charitable gift be distributed by your IRA manager directly to the SPLC. If the tax law is extended, the gift will meet the previous requirements and reduce your taxable estate. If the tax law is not extended, your gift will still meet the current requirements for itemized charitable contributions.

Important: In the past, this provision has only applied to gifts from IRA accounts; 401(k) plans or other tax-favored retirement planning vehicles are not eligible. Rollover gifts cannot fund gift annuities or other life income gifts. There is no corresponding charitable tax deduction for rollover gifts because they are not counted in income.

If you have any questions or need additional information, please call the planned giving department toll free at 1-888-414-7752 or contact us online. Urgent: If you send an IRA Rollover gift, please request that your IRA Manager include your contact information with your gift and then let us know to watch for the gift. They cannot identify your gift without your permission.

We recommend that you consult with your attorney or tax advisor for the various tax benefits and restrictions that may apply to your specific situation. We are available to you and your advisors to answer questions or help arrange a planned gift to the SPLC.