In a giving sort of mood? Have an IRA account that’s just sitting around collecting dust? Don’t wanna cash it out and pay tax on the distribution just to turn around and give it to charity at the lesser, “after-tax” amount? At least 70 1/2 years of age?
Well great news!!!! Section 112 of the recently passed PATH Act allows you to exclude from tax up to $100,000 PER YEAR that is donated, in a direct transfer, from your IRA to a qualified charitable organization,
Yep, it’s true. More money for the charity and less to good old Uncle Sam. AND this change was also made permanent, not one of those pesky extenders we have to wait to hear about at the end of every year so that’s nice too. For those waiting to hear on whether or not this was going to be extended for 2015, they had to wait until after December 18, 2015 to find out and then give during those last couple days of the year. Not a good way to tax plan, that’s for sure.
Wanna see a list of qualified charitable organizations? Here you go.