Tax-Free Transfers to Charity Renewed For IRA Owners 70½ or Older;
Rollovers This Month Can Still Count For 2014
WASHINGTON — certain owners of individual retirement arrangements (IRAs) have a restricted time to make tax-free transfers to eligible charities and have them count for tax-year 2014, the Internal Revenue Service said today.
IRA owners age 70½ or older have until Wednesday, Dec. 31 to make a direct allocation of part or all of their IRA distributions to an eligible charity.
The Tax Increase Prevention Act, enacted Dec. 19, extended for 2014 the provision authorizing these qualified charitable distributions (QCDs). The provision had expired at the end of 2013. With this retroactive renewal, any eligible IRA distribution during 2014 properly transferred to a qualified charity counts as a QCD.