Reminder! IRA Rollover is a key giving incentive

February 12, 2020

Many orchestras have received significant new contributions since the IRA Charitable Rollover provision was made permanent in 2015, allowing individuals age 70-1/2 and older to make direct, tax-free transfers of up to $100,000 per year (up to $200,000 for married couples) from their Individual Retirement Accounts (IRA) to qualified charities. Many donors are particularly incentivized to give when they reach the age threshold for required mandatory IRA distributions. Legislation signed into law at the end of December changes the age threshold for required minimum IRA distributions to age 72. Note that donors can still make tax-free qualified charitable distributions beginning at aged 70-1/2, though some may opt to wait until age 72 to make a gift.