By: Julie Frey.
If you are chairtably inclined and wish to use some of your IRA to fund your charitable donations, the Senate has just passed an extension of some “tax extenders” that were in place in 2013. It is anticipated that President Obama will sign the bill in the next few days. What does this mean for you? It means that if you are 70 1/2 years of age or older you can take up to $100,000 in tax-free distributions from your IRA in 2014 provided that the funds withdrawn are given to an eligible public charity. While one cannot also take a deduction for that contribution, the money won’t count as income. Once President Obama signs the bill into law, you will only have a few weeks to act, so contact your advisors now to alert them to your intention to make the withdraw and charitable contribution. The ability to do this ends on December 31, 2014.
