Please note: The information below was valid from the "America Gives More Act of 2014" passed by the House on July 17, 2014. However, Congress has not yet extended the charitable IRA legislation.
There's good news for individuals aged 70½ or older with individual retirement accounts. Thanks to the extended charitable IRA legislation, you can make outright gifts using IRA funds without tax complications.
If you are required to receive minimum distributions from your IRA and you do not need the money for personal use, consider using those funds as a charitable gift. While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount. You also will not need paperwork to prove a gift.
You may contribute funds this way if:
The next step:
Be sure to contact tax professionals and your IRA administrator if you are considering a gift under this law. Feel free to call Grace Ellens at 320-363-2551 with any questions.