Special IRA Tax-free Gifts
RE: Special Tax-free IRA gifts
Dear LMS Friend:
For those aged 70½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts. On December 18, Congress passed legislation retroactively extending the charitable IRA rollover for 2016 and makes this provision permanent for future years. A total of up to $100,000 can be transferred directly from traditional or Roth IRAs to one or more qualified charities such as Lancaster Mennonite School, free from federal income tax each year. There may also be state income tax savings. Amounts given in this way count toward required IRA minimum withdrawal amounts for the year of the gift.
To make such gifts, it is important to not withdraw funds prior to a gift, but have the gift amount distributed directly from an IRA to LMS. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA. Click here for a letter that you may want to use to notify your account administrator of your wishes. Note that if you would like to take advantage of this in 2016 timing is critical. Check with us, your IRA administrator or your tax advisor for more information.
Heidi Stoltzfus, CPA, CFRE