Tax bill includes extended help for charities

Friday, February 12, 2016

The Putnam County Community Foundation has announced that, Congress has passed the PATH Act, which renews and makes permanent the Charitable IRA provision of 2006, making it easier for Americans to donate to causes they care about.

The provision has the power to help local charities strengthen their communities by allowing individuals to roll over up to $100,000 annually from an Individual Retirement Account (IRA) to charity without being federally taxed. The benefit is available to individuals whether or not they itemize their deductions.

Thanks to decades of deliberate saving, some of today's retirees have more money in their IRAs than they need for daily living expenses and long-term care. The law allows taxpayers 70½ and older to share their wealth by giving retirement savings directly to charity -- and bypassing income tax. This law will benefit local charities who work hard to improve the community and provide programs that benefit people every day.

"It is a win-win for people who would rather give to charity than pay taxes and for the nonprofit organizations they choose to support," Elaine Peck, executive director of the Putnam County Community Foundation, said.

Annually, holders of traditional IRAs who are at least 70-1/2 years old can make direct charitable transfers up to $100,000. Individuals may exclude the amount distributed directly to an eligible charity from their gross income.

The Putnam County Community Foundation can help donors execute the transfers and choose from several charitable fund options for their gift. Donor Advised Funds do not qualify for tax-free IRA transfers.

Through philanthropic services, strategic grantmaking and community leadership, the Putnam County Community Foundation helps people support the causes they care about, now and for generations to come.

For additional information about making a qualified IRA rollover gift, persons may contact Elaine Peck at 653-4978.

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