New Law Makes Payments from IRA Tax-Deductible

New tax legislation was signed into law last week allowing those age 70 ½ or older to make a gift or pay a pledge up to $100,000 to a charitable organization, such as the Jewish Federation, with a tax-free distribution from one's individual retirement account(IRA).

To receive the tax benefit for 2015, the transfer from one's IRA must be made BEFORE DECEMBER 31, 2015.
 
Do not delay! This is a wonderful opportunity for you to use your IRA to accomplish your philanthropic goals.
 
What does the new law mean?

Without this law, withdrawals from IRAs for charitable gifts are counted as taxable income to you. With the law, your gift is treated as a fully tax-free transfer to the Federation. Moreover, what you give to the Federation under the law will count in the amount that federal law requires you to withdraw every year from your IRA.  
 
Rollovers that would otherwise have been taxable may now be rolled over free from federal income tax and count toward your required minimum distribution. You may not make direct distributions to donor advised funds, supporting organizations or split-interest trusts or in exchange for gift annuities. 
 
We encourage you to use these funds to: 
  • Make your gift (including pay your pledge) to the Annual Campaign 
  • Create an endowment to perpetuate your Annual Campaign gifts through the Life & Legacy program. 
The views expressed in this message are not intended, nor may they be relied upon, as legal, accounting or other professional advice. Before making a gift decision, you should consult your professional adviser.
 
If you would like to receive future updates pertaining to tax laws based on one's age, please respond to this email or call our office with your date of birth. 

For more information on the IRA Charitable Rollover or Life & Legacy program, please contact me at 732.588.1812 or 
lesliek@jewishheartnj.org

0Comments

Add Comment