New Legislation for Charitable Donations to Trinity from your IRA!

December 22, 2015

Recent legislations extends the IRA Charitable rollover retroactively for 2015 and makes it permanent going forward.

Under this legislation, if you are 70 ½ or older, you will be allowed to make certain charitable contributions directly from your Individual Retirement Account (IRA) to an eligible charity such as Trinity, and the transferred assets will not be recognized as income for tax purposes.

As a rule, withdrawals from IRAs are taxed as income; you would receive a tax deduction for your donation, but 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. 

To take advantage of the extension for 2015, donors need to arrange a direct transfer from their IRA to Trinity by December 31, 2015. Direct transfers from IRAs to Trinity made earlier in 2015 in anticipation of the IRA charitable rollover being extended will also count.

Making a donation under this provision is simple and straightforward. If you would like to make a contribution to Trinity from your Individual Retirement Account, please speak with your IRA administrator.