Congress recently passed legislation and the President signed into law the IRA charitable rollover for 2015. If you are over the age of 70 1/2 you can donate directly to the year-end NCCA Creative Caregiving Campaign from your IRA. Withdrawals from IRAs are taxed as income. You would receive a tax deduction for your donation, however other federal, and sometimes state, tax rules can prevent the deduction from fully offsetting taxable income.
The charitable IRA rollover, or qualified charitable distribution, makes it easier for you to use your IRA assets to make charitable gifts. It is a special provision that allows individuals age 70 1/2 or older to exclude from taxable income—and count toward their required minimum distribution—transfers of IRA assets, up to a total of $100,000, that are made directly to public organizations.
To use the extension for 2015, donors need to arrange a direct transfer from their IRA to their organization of choice by December 31, 2015. Direct transfers from IRAs to an eligible organization made earlier in 2015 in anticipation of the IRA charitable rollover being extended will also count.