The PATH Act of 2015, renewed and made permanent by Congress and the President on December 18, 2015, states that the IRA charitable rollover allows individual taxpayers older than 70 and one-half years to donate up to $100,000 annually from their Individual Retirement Accounts (IRAs) and Roth IRAs to charitable nonprofits without having to treat the withdrawals as taxable income. This gift can even count toward your required minimum distribution, and as such, can significantly reduce your income tax liability.
You can take advantage of the charitable rollover this year by contacting your IRA administrator and requesting your distribution be made before December 31. But thanks to this significant vote, the rollover will be available to you in future years as well.
This type of gift may be most beneficial, if any of the following apply:
- you don’t need the income of your minimum required distribution
- you have already reached your deductible giving limit based on adjusted gross income
- your income level causes a phase-out of your exemptions
- you don’t itemize your deductions
- you’ll incur more taxes on Social Security if you add to your income
To make your rollover tax free, you will need to transfer your contribution directly from your IRA administrator to a qualified charity like the American Romanian Festival Inc. For suggested language to use in notifying your administrator, click here (document, 26 kb).
At any age, it makes sense to consider naming the American Romanian Festival Inc. as beneficiary of your IRA assets. You can avoid multiple taxes, leave more for your heirs, and create a lasting cultural legacy.
We encourage you to contact your own tax professional and IRA administrator to determine if the IRA charitable rollover or designation of the American Romanian Festival Inc. as an IRA beneficiary is right for you.
Should you need additional information or wish to notify the ARF Inc. of your intention to contribute via a charitable rollover, please contact Marian Tanau at 734.308.5372 or email mtanau@gmail.com.
The American Romanian Festival Inc. thanks you for your support and wishes you a most wonderful holiday season.
The American Romanian Festival is a 501 c (3) non-profit organization.