People 70 ½ and older are probably aware of the IRA Charitable Rollover that has been in play since 2006. In short, the rollover allows individuals aged 70½ and older to donate up to $100,000 from their IRAs to charities without having to count the distributions as taxable income. Many Grand Rapids Community Foundation donors have taken this wonderful opportunity to give money directly to the causes they care about most in our community. 

Individuals may begin taking distributions from their IRAs as early as age 59½, but are required to begin taking them at age 70½. Normally, these distributions are subject to income taxes. However, the IRA charitable rollover encourages individuals to donate retirement account assets directly to public charities without incurring a tax liability on the donation. Each year, since its inception, Congress has been extending the rollover and we’re hopeful that this year it will be made permanent as part of the America Gives More bill package.

Working with our colleagues at the Council of Michigan Foundations and the Council on Foundations, we expect the IRA Charitable Rollover to be part of the extender package legislation that should be passed by early to mid-December. If extended, the IRA charitable rollover will be retroactive to January 1, 2014 and run through December 31, 2015. There were some additional provisions last year that allowed distributions in January 2014 to count towards 2013, but we do not expect that to be the case this year.

If you are considering taking advantage of the IRA charitable rollover this year, please stay tuned to our website for the latest information on this legislation. As always, our development team is happy to speak with you about any questions you have! Marilyn Zack, our VP of Development, can be reached at 616-284-4927 or mzack@grfoundation.org.