IRA Direct Charitable Contribution Revived

When President Obama signed the recently passed Tax Increase Prevention Act of 2014 into law, the tax provision allowing an individual taxpayer to use their Individual Retirement Account (IRA) for direct charitable contributions was put back into play, albeit for a very short period of time.

The ability to use an IRA distribution for direct charitable contribution purposes had expired as of December 31, 2013. The act, once again, extends the time for an individual taxpayer, who is at least
70 ½ years of age, to distribute up to $100,000 tax-free from their IRA to a qualifying charitable organization.

The new extension period only runs through December 31, 2014. There is no transitional period as was provided the last time this tax provision was extended at December 31, 2011. That means there is very limited time remaining to get this distribution and contribution completed before the opportunity once again expires.

If you have any questions, please contact your Eide Bailly professional or office. 

Eide Bailly's National Tax Office serves as a resource for clients to help analyze complex tax issues related to business decisions. Our professionals are committed to helping clients stay informed about tax news, developments and trends through various specialty areas, including cost segregation studies, wealth transfer, state and local taxation, international tax, IRS controversy and procedures, tax-exempt organizations and tax legislation.