We believe it is important to utilize to their fullest the resources with which God has blessed us. While we do not endorse any particular resource, we trust that the few listed below will assist you in your stewardship.
On December 16, the Senate passed HR 5771 which includes reauthorization of the IRA Charitable Rollover for 2014. The President signed the legislation into law on December 19. The law will expire December 31, 2014 without any grace period.As in years past, the IRA Charitable Rollover allows individuals 70 ½ and older to donate up to $100,000 in IRA assets to a qualified charitable organization. The Charitable IRA Rollover is tax-free and not included in a donor’s adjusted gross income.Explanation of Provision
Individuals may make gifts to charity from traditional and Roth IRA accounts without any federal tax liability as long as the gifts are “qualified charitable distributions”. No charitable deduction may be taken by the owner, but distributions will qualify for all or part of an IRAowner’s Required Minimum Distribution.What does this mean to you as a supporter of Christian ministries?It allows for direct charitable gifts from IRAs for the year of 2014. Individuals may make gifts to charities from traditional and Roth IRA accounts without any federal tax liability, as long as the gifts are “qualified charitable distributions.” No charitable deduction may be taken by the owner,but distributions will qualify for all or part of an IRA owner’s Required Minimum Distribution.Requirements for “qualified charitable distributions”…
For a sample letter to request an IRA distribution under this provision, go here!Frequently Asked QuestionsCan I make a charitable gift from my 401(k) or 403(b) plan?No, the charitable gift is restricted to distributions from traditional IRAs and Roth IRAs. Distributions from 401(k), 403(b), SEP, KEOGH and Simple IRA accounts do not qualify. However, it may be possible to rollover your retirement account into a traditional IRA in order to make a qualified distribution. Talk with your financial planner or IRA administrator about your rollover options.Can I use my IRA to fund a Charitable Gift Annuity or Charitable Remainder Trust?No, despite efforts of the charitable community, this provision does not allow gifts from an IRA to fund a Charitable Gift Annuity or Charitable Remainder Trust. Qualified charitable distributions are limited to outright gifts.Will my charitable distribution qualify for my Required Minimum Distribution (RMD)?Yes, your gift may be calculated as part of your RMD. This provision is especially helpful to those individuals who are required to take IRA withdrawals when they are not necessarily needed as additional income.Do I receive a deduction for my gift?No, because the IRA assets haven’t been taxed, no deduction is allowed. To receive a deduction, you would be required to treat the distribution as taxable income first, before taking the deduction. In most cases, it is better not to take the distribution as income.Who benefits most from this Law?There are several groups of individuals who will benefit from the charitable rollover.