President Obama signed into law the Protecting Americans From Tax Hikes Act of 2015, which retroactively reinstates the provision for tax-free charitable gifts from IRA’s for 2015 and makes the provision permanent going forward. This is important news because the law that allowed individuals to make tax-free charitable gifts from an IRA expired at the end of 2014.
If you have been considering a tax-free rollover gift from your IRA to Missouri Citizens for the Arts or Missouri Citizens for the Arts Education Fund, you may find the information below helpful.
Under the new law:
· You must be 70 ½ years of age or older when the distribution is made.
· The transfer must go directly from your IRA to MCA or the charity of your choice.
· The provision has been made permanent. You may made tax-free transfers from your IRA to a charity or charities totaling up to $100,000 each calendar year. Your spouse may also be eligible to make such gifts up to $100,000 from his/her IRA.
· A charitable rollover gift from your IRA will count toward your minimum distribution requirement.
· Gifts from IRA may only be used to make an outright gift to a qualified public charity. Missouri Citizens for the Arts is a 501(c)4. Missouri Citizens for the Arts Education Fund is a 501(c)3.
IRA assets cannot be used to fund a gift annuity, charitable remainder trust, a donor advised fund, or a private foundation.
Please consider Missouri Citizens for the Arts or Missouri Citizens for the Arts Education Fund when you make your charitable gift-giving plans. We thank you for your support.