January 20, 2016

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Contact: Gigi Thompson Jarvis, CAE   
Telephone: (202) 822-0724  
E-mail: gjarvis@naea.org                 

Washington, DC — (January 19, 2016) The IRA charitable rollover provision, which allows individuals who have reached age 70½ to donate up to $100,000 to charitable organizations directly from their Individual Retirement Account (IRA) without treating the distribution as taxable income, has been made permanent. This is good news for taxpayers and charities alike. The rollover provision is part of a package of 55 temporary tax extenders that were reinstated retroactively for only the 2014 tax year, but had expired again on January 1, 2015."

Individuals are required by the tax code to begin withdrawing from their IRAs no later than age 70½,” said Jerry Gaddis, EA, an enrolled agent with Tropical Tax Solutions in Key Largo, FL.  “Normally, these distributions are subject to income taxes, but the IRA charitable rollover provision allows individuals to donate up to $100,000 to charitable organizations directly from their IRA, without treating the distribution as taxable income.” 

Gaddis further explained that in order to qualify, contributions must go directly to a public charity and be made from traditional IRAs or Roth IRAs. Donors may receive no goods or services in return for their contributions, and must obtain written documentation of their contribution from each recipient charity.

The Protecting Americans from Tax Hikes (PATH) Act, passed by the House and Senate and signed into law on December 17, makes permanent three charitable giving tax incentives which have been expired since January 1, 2015, including the IRA charitable rollover.

The IRA charitable rollover is an excellent example of how taxpayers can lighten their tax burdens and help worthy causes at the same time. It’s just one example of responsible tax planning. With the tax deadline fast approaching, it’s not too soon to speak with a licensed tax professional, such as an enrolled agent, about how to make the most of the credits and deductions to which you are entitled.


About Enrolled Agents 
Enrolled agents (EAs) are America’s tax experts. They are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. That means that if you get a letter from the IRS, or worse, are audited or are the target of a collection action, your EA can speak directly to the IRS on your behalf. You can find an enrolled agent in your area using the searchable “Find an EA” directory at www.eatax.org.      





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