IRA Charitable Rollover Made Permanent

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IRA Charitable Rollover Made Permanent

The Protecting Americans from Tax Hikes Act of 2015 was signed into law by President Obama on December 18, 2015. It makes permanent the tax code provision which allows donors to make charitable gifts from their IRA accounts without incurring income tax on the withdrawal. The provision originally was enacted in 2006 and has been re-authorized several times. The 2015 Act also retroactively reinstates the provision for all of 2015. Thus, if you already made a 2015 IRA gift to Berkeley that met the following requirements, your gift will qualify under the new law.

The key requirements are:

(i)               IRA account holder must be at least age 70½ at the time the distribution is made to the charity;

(ii)              Distribution must be made directly from the IRA custodian to the charity;

(iii)             Gift cannot exceed $100,000 per donor per year; and

(iv)             Goods or services cannot be received by the donor in exchange for the IRA gift.

If after talking with your professional advisors you decide to make a charitable gift from your IRA, please contact our office for a sample letter of instruction for your IRA custodian. Your IRA gift can support Berkeley generally or the particular program, unit, or campus project most important to you.