The Charitable IRA Rollover: Opportunity for 2016

The American Taxpayer Relief Act of 2012, an attempt by Congress to avoid the fiscal cliff, resurrected the IRA Charitable Rollover, which had expired at the end of 2011.

Translated, that means this provision has been extended through December 31, 2013. It authorizes a tax free Qualified Charitable Distribution (QCDs) transferred from an IRA directly to a charitable organization such as Casa Colina.

  • The owner of the IRA making the direct transfer must be age 70 ½ or older to qualify.
  • Each IRA owner can exclude from gross income up to $100,000 of QCDs annually.
  • Transfers are only allowed from an IRA

The QCD can be used as a strategy to reduce taxable income that is required from an IRA in 2013. In other words, all or a portion of the income distribution that is required to be made by the IRA to its owner can be distributed instead directly to Casa Colina. The charitable distribution is not subject to income tax for 2013.

For information about how you can benefit from this revised tax benefit, you should:

  • Contact your IRA fund advisor for directions, or
  • Contact: Chris Cole, Executive Director of Philanthropy, Casa Colina Foundation

The information in this article is not considered as legal or tax advice. The reader should consult with his or her tax accountant or legal counsel.

For more information, contact:

  • Casa Colina Foundation
    255 East Bonita Avenue
    Pomona, CA 91767
    909/596-7733 x2232
  • Legal Name: Casa Colina Foundation
    State of Business: California
    Tax ID Number: 95-3655255