Church of the Resurrection

Contributions from IRA

Special Charitable Contributions for Certain IRA Owners

An IRA owner, age 70 1/2 or over, can directly transfer tax-free up to $100,000 per year to an eligible charitable organization. This option, created in 2006 and extended through 2013 [and most likely again through 2015], is available to eligible IRA owners, regardless of whether they itemize their deductions. Distributions from employer-sponsored retirement plans are not eligible.

  • A qualified charitable distribution is any distribution from an IRA directly by the IRA trustee to a charitable organization, including a church, that is made on or after the date the IRA owner attains age 70½.
  • A distribution will be treated as a qualified charitable distribution only to the extent that it would be includible in taxable income without regard to this provision.
  • This provision applies only if a charitable contribution deduction for the entire distribution would be allowable under present law, determined without regard to the generally applicable percentage limitations. For example, if the deductible amount is reduced because the donor receives a benefit in exchange for the contribution of some or all of his or her IRA account, or if a deduction is not allowable because the donor did not have sufficient substantiation, the exclusion is not available with respect to any part of the IRA distribution.
—by Richard R. Hammar, ChurchLawAndTax.com