If you are philanthropically minded and want to make a charitable donation before the end of the year Congress just passed the Protecting Americans from Tax Hikes Act of 2015, which now makes it possible for you to contribute to a public charity of your choosing up to $100,000 from your IRA. There are some strings attached in order to take advantage of this wonderful gift Congress has given to us:
- You must be 70 ½ or older;
- You cannot give more than $100,000;
- It must be to a public charity directly from your IRA;
- It cannot come from a 401k or other retirement plan, unless you first move it to an IRA.
By making the charitable donation this way- directly from the IRA to the charity- you don’t have to realize on the income for income taxes purposes on the amount distributed to the charity and you would qualify for the charitable deduction.
So if you are in the spirit of giving during this time of year Congress has just given you a great opportunity to make a donation to your favorite charity from your IRA or Roth IRA.
If you miss out on taking advantage of this charitable donation this year- fear not- Congress made it applicable for not only 2015, but for all future years as well.
Contributed by Morris Hall PLLC Phoenix, Arrowhead and Scottsdale Estate Planning Attorney and Partner, David T. Eastman.
About Morris Hall, PLLC:
At Morris Hall, PLLC we have focused our legal practice on estate planning for over 45 years. Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects. We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Carefree, Tucson, Oro Valley, Prescott, Sedona, Flagstaff and Arrowhead. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.