Act Now to Take Advantage of IRA Charitable Rollover for 2015
Newly-enacted legislation, HR 2029 (“The Protecting Americans from Tax Hikes Act” of 2015), permanently extends the IRA Charitable Rollover for 2015 and going forward. Due to the short window in which you can complete an IRA Charitable Rollover for 2015, we wanted to share this information with you immediately.
The provision allows individuals age 70½ or older to make tax-free gifts totaling up to $100,000 from a traditional IRA account directly to Voices for Children, provided they are completed by December 31, 2015. If your spouse has IRA accounts, you may each make gifts of up to $100,000 from these accounts. While you cannot claim an income tax charitable deduction for an IRA charitable rollover, this distribution from your IRA counts toward your minimum required distribution for the account and does not trigger income tax for you. It is a tax-free transfer from the IRA account directly to Voices for Children.
In order to complete an IRA Charitable Rollover for 2015, please contact your IRA provider for exact instructions. We offer below a sample letter you can use to your IRA provider. Such transactions usually take a few weeks, but the provider should be able to fast-track such a transaction because Congress and the President acted so late this calendar year.
If you do plan to complete an IRA Charitable Rollover for Voices for Children, please let us know so that we can look for it—you can call Anne Farrell at (858) 598-2246 or reach her by email at AnneF@speakupnow.org.
Thank you for support of Voices for Children—you are helping transform the lives of many foster children in our community.
SAMPLE LETTER TO YOUR IRA PROVIDER
[NAME OF IRA PROVIDER]
[CITY, STATE, ZIP]
(Call your plan provider to determine the most efficient way to send this letter of instruction—email, fax, or postal mail)
Re: Request for Qualified Charitable Distribution from Individual Retirement Account
Dear Sir or Madam:
Please accept this letter as my request to make a qualified charitable contribution from my Individual Retirement Account Number:
[insert account number]
as provided by the Tax Increase Prevention Act of 2015 and Sec. 408(d)(8) of the Internal Revenue Code of 1986, as amended.
Please issue a check in the amount of $____________ payable to Voices for Children (Tax ID# 95-3786047) at the following address:
Voices for Children
2851 Meadow Lark Dr.
San Diego, CA 92123-2709
In your transmittal to Voices for Children, please state my name and address as the donor of record in connection with this transfer, and copy me on your transmittal. It is my intention to have this transfer qualify during the 2015 tax year. Therefore, it is imperative that this distribution be postmarked no later than December 31, 2015.
If you have any questions or concerns regarding this request, I can be reached at [PHONE AND EMAIL ADDRESSES].
Thank you for your prompt attention to and assistance with this matter.