Make the most out of your IRA this holiday season

Nov 23, 2016
The season of giving is upon us. In coming weeks, people will give thanks and gifts to families and friends. Some will also give to children in need.
Consider a year-end gift this holiday season. It’s the perfect way to extend your Kiwanis impact—by giving the gift of a better future to kids around the world.
For U.S. donors, supporting the Kiwanis Children’s Fund and The Eliminate Project has become even simpler. Last December, Congress passed the Protecting Americans from Tax Hikes Act of 2015. The law makes it easier for donors with an Individual Retirement Account to give to the causes they support. In the past, incentives for donors were limited, since 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 total 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? Contact your legal and financial advisors.