U.S. legislature renews IRA rollover for 2014...

HOW THE IRA CHARITABLE ROLLOVER CAN BENEFIT YOU

December 16th, the Senate passed the Tax Increase Prevention Act of 2014 which had previously been passed by the House. The bill included a renewal of the IRA rollover option for 2014, retroactive to January 1, to support your philanthropic and charitable giving:

  • You qualify if you are at least 70-1/2 years of age (Birth date of June 30, 1942 or before) and have a regular or Roth IRA. (If you have other retirement fund assets that you want to use, you may be able to transfer those assets into an IRA and then distribute your gift from the IRA.)
  • Transfers must go directly from your IRA custodian to Wayne State University.
  • Transfers must be initiated by the close of business December 31, 2014.
  • Gifts cannot exceed $100,000 per individual, per year.
  • This will be of special interest if you:

  • Don't need all of your mandatory minimum withdrawals; you can lower your taxable income by directing a distribution be sent from your IRA directly to Wayne State University for use as you determine.
  • Want to reduce future required minimum distributions. By reducing the IRA principle, you reduce the amount on which future calculations are based.
  • Intend to make charitable gifts anyway. Retirement assets are an effective gift to charities who are not subject to income tax. An individual beneficiary may be subject to income tax.
  • Want to contribute more than 50% of your adjusted gross income to charity, because a distribution from your IRA to Wayne State University is not included in the charitable gift limitation of 50% of AGI, enabling you to contribute more in 2014.
  • Receive Social Security income and wish to reduce the rate at which your Social Security income is taxed.
  • Do not itemize your tax deductions and thus receive no tax benefits for charitable gifts.
  • Have significant assets in your IRA(s).
  • Please call the Planned Giving Office at (313) 577-6481 to discuss this gift opportunity or to tell us if you are arranging an IRA Rollover gift so we may assist. Consult your retirement plan administrator for transfer instructions. A sample letter is part of the PDF linked here.

    This information is provided by Wayne State University for discussion purposes only and should not be relied upon as tax or investment advice.

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