Congress Approves Special Tax-Free IRA Gifts

For those ages 70½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.

On Dec. 18, Congress passed legislation retroactively extending the charitable IRA rollover for 2015 and making this provision permanent for future years.

A total of up to $100,000 can be transferred directly from traditional or Roth IRAs to one or more qualified charities, including Pacific University. These transfers are free from federal income tax each year. There may also be state income tax savings.

Amounts given in this way count toward required IRA minimum withdrawal amounts for the year of the gift.

To make such gifts, it is important not to withdraw funds prior to a gift, but to have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

Check with Pacific University Associate Vice President for University Advancement Jan Stricklin at 503-352-2890, or with your IRA administrator or tax advisor, for more information.

Friday, Dec. 18, 2015