The Charitable IRA legislation is permanent!
We want to remind you of an excellent opportunity to support the FarmHouse Foundation this year. In December 2015, President Obama signed into law making the IRA Charitable Rollover provision permanent. The law allows you to make tax-free gifts to the FarmHouse Foundation from your Individual Retirement Account (IRA) each year.
Individuals aged 70½ or older can make gifts up to $100,000 per year using funds transferred directly from their IRA without paying taxes on the distributions. The transfer generates neither taxable income nor a tax deduction, so you will benefit even if you do not itemize your tax deductions. In addition, your IRA gift can count toward your minimum required distribution as long as you have not received your distribution this year.
You may contribute IRA funds this way if:
You are 70 ½ or older
The gift is $100,000 or less each year
You make the gift on or before December 31 each year
You transfer funds directly from an IRA or Rollover IRA
You transfer the gift outright to one or more public charities
How the Law Works
George, age 80, has $450,000 in an IRA and has pledged to give the FarmHouse Foundation $75,000 this year. If George transfers $75,000 directly to the FarmHouse Foundation from his IRA, he will avoid paying income tax on that amount. He cannot, however, claim a charitable deduction – it is a pure wash. If his spouse has an IRA and is 70 ½ or older, she can also give up to $100,000 each year. George has found an easy way to benefit the FarmHouse Foundation without tax complications.
How to Make a Gift
You will need to contact your IRA administrator and have them send a check directly to The FarmHouse Foundation (Tax ID# 36-6111880), 7306 NW Tiffany Springs Pkwy, Suite 310, Kansas City, Mo. 64153. Feel free to use this sample request letter in contacting your IRA administrator. It is wise to consult tax professionals if you are contemplating a gift under this law.
If you are interested in this unique opportunity to Build the Leaders of Tomorrow, or if you have questions, please contact Allison Rickels (Allison@FarmHouse.org or 816-891-9445).