IRA Rollover is back! (Well, almost)

I don’t know how Campbell and Company knows it but they just sent the following email – so they deserve some credit! Stay tuned for my own instructions… (EMBARRASSMENT CORRECTION – APPARENTLY CAMPBELL’S PR PERSON DIDN’T CONFIRM BEFORE THEIR EMAIL WENT OUT SO STAY TUNED FOR HOPEFULLY GOOD NEWS ON THIS ONE)

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December 2014

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Breaking News: IRA Rollover Retroactive Extension
Congress has extended a tax break on charitable donations from individual donor’s retirement accounts retroactively to January 1, 2014. This provision, which expired in 2013, allows individuals 70 ½ and older to donate up to $100,000 in IRA assets to a qualified charitable organization. The IRA charitable rollover is tax-free and not included in a donor’s adjusted gross income.

This retroactive extension is important to donors, many of whom donate a portion of their IRA distribution each year. A gift to a charitable organization from an individual’s IRA can count toward the annual Required Minimum Distribution (RMD) required by the IRS. Moreover, by reducing taxable income, the provision can help donors avoid or reduce tax implications.


Tips for Donors:

  • Consult your financial advisor about your IRA and RMD.
  • If you decide to distribute a charitable gift from your IRA, ensure that your IRA’s custodian transfer it directly from the IRA to the charity.

Tips for Charitable Organizations:

  • Reach out to donors who you know were waiting to see whether this provision would be retroactively extended. Fidelity Investments says that nearly 60% of its IRA customers who are required to take RMDs have yet to withdraw the full amount for this year.
  • Consider sending out a broader e-mail about this topic to your donors as a gentle reminder that they can reach their RMD through a charitable gift from his or her IRA.

After enacting the IRA rollover tax break for 2006 and 2007, Congress has extended it three times each for two years. The provision will expire on December 31, 2014 and it is unknown whether it will be extended into the coming year.

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about us

Campbell & Company is a national consulting firm offering advancement planning, fundraising, communications and executive search services for nonprofit organizations in the education, health and medicine, arts and culture, environment, social service, and professional society fields.
Through thirty-plus years and thousands of engagements, we have helped nonprofit organizations anticipate and manage the challenges of the philanthropic marketplace. With offices around the country, Campbell & Company brings you the benefits of local knowledge, and national best practices. Please visit www.campbellcompany.com for more information.

3 comments

  1. Has this been confirmed?

    I’m watching c-span right now and (as of 4:04 ET) senator John Hoeven (R-ND) is still speaking in favor of passing the tax extenders bill and urging his colleagues to pass the Tax Increase Prevention Act.

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