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Congress Extends IRA Charitable Rollovers

by Phil Levin, Esq. on December 24th, 2014

In one of its final actions, the 113th Congress passed the Tax Increase Prevention Act of 2014 which the President signed into law on December 19th. This legislation extends for one year a host of popular tax provisions (commonly referred to as “tax extenders”) that had expired at the end of 2013.

One of the tax extenders is the IRA charitable rollover. Persons age 70½ or older can make a qualified charitable distribution (QCD) of up to $100,000 from their IRA and exclude the distribution from their gross income. The distribution must be made directly to a qualified charity by December 31, 2014.

QCDs count toward satisfying any required minimum distributions (RMDs) that the IRA owner would otherwise have to receive from his/her IRA, just as if he/she had received an actual distribution from the plan. IRA owners aren’t able to claim a charitable deduction for the QCD on their federal income tax return.

We hope that this recent news is of value to you and your clients in connection with their financial charitable planning for 2014.

As Winston Churchill said, “We Make a Living by What We Get, but We Make a Life by What We Give.”

The Levin Law Firm wishes you and your family a happy, healthy, and prosperous New Year!

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