Lexington, Ky. – U.S. President Barack Obama has recently signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015, which is legislation that includes a permanent extension of the IRA charitable rollover.
According to Ford Stanley, senior director of gift and estate planning at the University of Kentucky, the IRA charitable rollover allows taxpayers age 70-and-a-half years or older to make tax-free charitable gifts of up to $100,000 per year directly from their individual retirement accounts to eligible charities.
“The IRA charitable rollover is proving to be quite popular with taxpayers and very beneficial for charitable organizations such as the University of Kentucky,” Stanley said. “Those electing to use it pay no income tax on the gift. Also, taxpayers may benefit from it even if they do not itemize their tax deductions.”
In order to take advantage of the IRA charitable rollover, persons must make a gift from their IRA on or before Dec. 31.