President Obama has signed into law the Tax Increase Prevention Act of 2014 which extends the provision for tax-free gifts from IRAs for 2014. If you have been considering a tax-free rollover gift from your IRA to FolkTime, you may find the information below helpful. Under the Tax Increase Prevention Act of 2014: You must be 70½ years of age or older when the distribution is made. The transfer must go directly from your IRA to FolkTime. Through December 31, 2014, you may make tax-free transfers from your IRA to a charity or charities totaling up to $100,000. Your spouse may also be eligible to make such gifts up to $100,000 from his/her IRA. The law is retroactive from January 1, 2014, so if you made a direct transfer in 2014 from your IRA to FolkTime prior to passage of the new law, that transfer will qualify as a tax-free IRA rollover gift. If you have not taken your 2014 required minimum distribution from your IRA, a charitable rollover gift from your IRA will count toward your minimum distribution requirement. Although you cannot deduct the gift on your income tax return, the distribution is not reported as income, so there is no adverse income tax effect. Gifts from an IRA may only be used to make an outright gift to a qualified public charity, such as FolkTime. IRA assets cannot be used to fund a gift annuity, charitable remainder trust, a donor advised fund, or a private foundation.
Posted on: Tue, 23 Dec 2014 21:28:34 +0000
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