Individuals 70 1/2 and older may once again donate up to $100,000 from their individual retirement accounts (IRA) directly to charitable nonprofits, retroactive to Jan. 1, 2015. The Protecting Americans from Tax Hikes Act (PATH) was signed by the president Dec. 18.
Section 112. Extension of tax-free distributions from individual retirement plans for charitable purposes. The provision permanently extends the ability of individuals at least 70½ years of age to exclude from gross income qualified charitable distributions from Individual Retirement Accounts (IRAs). The exclusion may not exceed $100,000 per taxpayer in any tax year.
The donation is tax-free, but must be made from an IRA, according to Nathan Stetler, Vice President of Business Development, The Stetler Company. The donor must also not receive goods or services in return for the rollover gift in order to qualify for tax-free treatment.
Reinstating the rollover benefits Americans nationwide, according to the National Council of Nonprofits. It’s an invaluable avenue for funding social, religious, artistic and academic programs.
SUNY Downstate alumni donate thousands annually to help Downstate med students pay for their education, travel to conferences, gain hands-on experience in Brooklyn and around the globe, among other programs.