Congress has passed the Tax Increase Prevention Act of 2014, which reinstates the IRA charitable rollover for 2014. Expected to be signed into law by the president shortly, this provision allows individuals at least 70 years and six months old to transfer up to $100,000, tax-free, from their Individual Retirement Account to a qualified charity by December 31, 2014.

With time running out, JUF recommends determining if this provision will benefit you.

The legislation is retroactive to the beginning of the calendar year. Any qualified charitable distribution (directly from the IRA trustee payable to the charity from IRAs of those at least 70 years and six months) that has already taken place this calendar year will qualify for IRA Charitable Rollover treatment.

Requirements are as follows:

• Distributions can only be made to a qualified charitable organization such as the JUF or Jewish Federation;
• Distributions must be made directly to the charitable organization through the plan administrator; and
• Distributions may not be made to a philanthropic fund, supporting foundation, split interest trust or charitable gift annuity.

Qualified distributions can be used to make a gift to the JUF Annual Campaign or The Centennial Campaign and receive the following benefits:

• The distribution will not be treated as a taxable distribution to you (but you would not receive a charitable deduction for the distribution amount)
• Taxable assets will be removed from your estate
  
• Gifts qualify for IRA required minimum distributions

To learn more about how distributions from your IRA may fit into your charitable giving, contact Legacies and Endowments at (312) 357-4853 or email [email protected].