IRA Charitable Rollover Reinstated for 2015 and Made Permanent

December 17, 2015

It has become something of a Christmas tradition. Following a similar pattern from recent years, Congress has once again waited until the final days of the year before reaching an agreement to approve the so-called “IRA charitable rollover” along with a group of other temporary tax provisions, collectively referred to as “tax extenders.”

However, this year something is different. In addition to the charitable rollover likely to be passed by Congress today and made retroactive to January 1, 2015, the agreement would make the charitable rollover provision a permanent fixture of the tax code so that it will no longer have to be renewed on an annual basis.

Under the agreement expected to be signed into law by President Obama, taxpayers age 70 1/2 or older can now give up to $100,000 from their IRAs or Roth IRAs to qualifying charities without having to pay income tax in 2015 (and future years) on the withdrawn amount—with the distributions also counting toward the IRA holders’ annual minimum required distributions (MRDs).

ECFA has prepared a sample communication that churches and ministries can use in communicating this year-end giving opportunity to their donors. Note: This communication should be sent ONLY if the bill is officially signed into law before December 31, 2015.

And in case you missed it, check out ECFA’s free webinar-on-demand for more information and updates on yearend giving and receipting issues.

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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