Giving Through Your IRA
On December 16, the Senate passed legislation which includes reauthorization of the IRA Charitable Rollover for 2014. This tax provision allows owners of individual retirement accounts who are 70½ or older to make gifts directly to charity. This limited opportunity allows for donations of up to $100,000 of IRA assets to be sent directly to Ligonier Ministries or other non-profits without reporting the withdrawal as taxable income.
The law will expire December 31, 2014, without any grace period. This legislation will not become law until it’s signed by the President, which is expected.
What does this mean to you as a supporter of Ligonier Ministries?
It allows for direct charitable gifts from IRAs for the year of 2014. You may make gifts to our outreaches from traditional and Roth IRA accounts without any federal tax liability, as long as the gifts are "qualified charitable distributions." You may not take a charitable deduction, but distributions are not included in your adjusted gross income and will qualify for all or part of your Required Minimum Distribution.
Requirements for "qualified charitable distributions":
- Gifts are tax-free up to $100,000 per year
- Gifts will qualify for all or part of your Required Minimum Distribution
- This provision will only apply to gifts made by December 31, 2014
- IRA holder must be age 70 1/2 or older at the time of gift
- Gifts must be outright gifts made directly to a charitable organization
- Distributions to donor-advised funds or support organizations are not permissible
- Distributions may only be made from traditional IRA or Roth IRAs, not 401(k) or 403(b) plans
If you have questions about this or would like to donate to Ligonier Ministries using other appreciated assets, please contact our Director of Stewardship at 1-800-220-7636 ext. 1182 or email email@example.com.