Breaking News: IRA Charitable Rollover Made Permanent

Congress has reached a last minute deal to extend the charitable IRA rollover retroactively for 2015 and make it permanent with no expiration date for future years. The legislation passed Congress and was signed by the President on Friday, December 18. The deal was part of a larger package on other tax extenders and the budget.

To take advantage of the extension for 2015, donors need to arrange a direct transfer from their IRA to an eligible charity by December 31 to count against their required minimum distribution for 2015. Direct transfers from IRAs to an eligible charity made earlier in 2015 in anticipation of the charitable IRA rollover being extended will also count.

To qualify, the IRA owner must be age 70½ or older, the annual limit is $100,000, and donor-advised funds and supporting organizations are not eligible. As the charitable IRA rollover now has no expiration date, donors will have the ability to plan their IRA required minimum distributions with the knowledge that the charitable IRA rollover is available.