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IRAs can qualify for tax-free charitable distributions

Dec 21, 2015
There is good news for U.S. donors looking to support the Kiwanis Children’s Fund or The Eliminate Project. You can now make tax-free charitable gifts directly from your Individual Retirement Account if you are 70 ½ or older.

On December 18, 2015, Congress passed the Protecting Americans from Tax Hikes Act of 2015. The new law makes it easier for donors with an IRA to give to the causes they support. In the past, incentives for donors were limited, as even IRA withdrawals for charities were subject to income tax. That has now changed: Donors may transfer up to US$100,000 to charitable organizations directly from their IRA without incurring tax.

Here are a few important things to know about the IRA charitable rollover:
  • Donors age 70 ½ or older are eligible.
  • Tax-free IRA transfers may amount up to US$100,000 annually.
  • This opportunity only applies to IRAs. Other retirement plans are not eligible.
  • Donors may give to more than one charity through an IRA.
Want to know if this is the right option for you? Download this simple worksheet created by the Council on Foundations to help you decide. Interested donors may also download a sample Letter of Instruction.

Contact our foundation for more information at 1-800-KIWANIS, ext. 157.

Note: The Kiwanis International Foundation does not provide financial or legal advice. You should consult your financial and legal advisors about your personal situation before proceeding with your gift.