Whidbey Camano Land TrustSpecial Tax-free IRA Gifts Whidbey Camano Land TrustSpecial Tax-free IRA Gifts

Special Tax-free IRA Gifts

Price-family

Land Trust member Ken Price with his granddaughter Lydia and Sailor the Dog at Greenbank Farm

If you’ll attain the age of 70½ years by December 31, you’re eligible to make a qualified charitable distribution from an IRA. This is a provision of the Protecting Americans From Tax Hikes (PATH) Act of 2015. The benefit is that it counts toward your required minimum distribution and is excluded from your gross income.

The Whidbey Camano Land Trust has a number of donors who take advantage of the charitable IRA rollover, so we thought all of our donors would appreciate knowing about this tax-free way of giving!

The Protecting Americans from Tax Hikes Act of 2015 was signed into law in December of 2015. The act retroactively extended the charitable IRA rollover for 2015 and made this provision permanent for future years. A total of up to $100,000 can be transferred directly from your traditional or Roth IRA to one or more qualified charities free from federal income tax each year.

Amounts given in this way, called qualified charitable distribution (QCD) donations, are excluded from your gross income and count toward your required minimum distribution (RMD) amounts, which are taxable. (Note that couples with separate IRAs may each transfer up to $100,000 per year.) Additionally, there may be state income tax savings for some.

To make such gifts, it is important to not withdraw funds prior to a gift, but instead to have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

Check with us, your IRA administrator, or your tax adviser for more information.

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