• The Window May Be Closing On Charitable Contributions From Your IRA
  • November 16, 2011 | Authors: Edward H. Brown; James M. McCarten; Bruce A. Rawls; Dudley Q. Sharp; Jack P. Stephenson
  • Law Firms: Burr & Forman LLP - Atlanta Office ; Burr & Forman LLP - Nashville Office ; Burr & Forman LLP - Birmingham Office ; Burr & Forman LLP - Orlando Office ; Burr & Forman LLP - Birmingham Office
  • Since 2006, taxpayers have been able to benefit from a popular estate planning technique known as an IRA Charitable Rollover. Individual retirement account rules require taxpayers to take distributions (and pay the associated income tax) from their IRA beginning at age 70 1/2. The IRA Charitable Rollover, however, permits taxpayers to make transfers from traditional IRAs of up to $100,000 per year directly to charities without being required to report any income. Without this provision, taxpayers would need to take a taxable distribution from their IRA and then use the proceeds to make the charitable contribution. Unfortunately, for many high income taxpayers the deductions for charitable contributions are limited and often will not offset the income recognized from the distribution. By making the contribution directly from the IRA, this problem is avoided.