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In late 2015, Congress passed the PATH Act to make the IRA Charitable Rollover a permanent provision of the law.  

Under the Rollover  provision, distributions from  both traditional and Roth IRA’s could be made directly to the donor’s selected charitable organization(s) without being included as taxable income to the donor.

This provision offers Louisiana Baptists the continued opportunity to make qualified charitable distributions (QCD’s) directly from their IRA to their church, Louisiana College, the Louisiana Baptist Children’s Home or any other ministry related to the Louisiana Baptist or Southern Baptist Conventions.  

 

BASIC FACTS ABOUT THE IRA CHARITABLE ROLLOVER 

Donor must be at least 70 1/2 years of age.

Donations of up to $100,000 made directly to charitable organizations are not included in gross taxable income.

Traditional IRA’s and Roth IRA’s only; Simple IRA’s, SEPP IRA’s, 401k, 403b plans not eligible.

Donations count toward Donor’s annual Minimum Required Distribution.

Donations from IRA’s are not used to calculate gift limits on Adjusted Gross Income (AGI).

Donor must instruct IRA Custodian/manager to transfer funds directly to qualified charitable organization.

Donation must be outright gift (rollovers to gift annuities, donor advised funds, or charitable trusts are not eligible).

INDIVIDUALS WHO MAY BENEFIT FROM THE IRA CHARITABLE ROLLOVER

Donors who do not itemize deductions on federal income tax return.

Donors who don’t need the income from the minimum required distribution (IRA rollover can be used to satisfy donor’s tithe which frees up cash flow from other income sources).

Donors for whom additional income will cause more of their Social Security income to be taxed.

Donors whose income level causes phase out of exemptions.

Donors who give at the 50% of AGI deduction limit.

 

For more information:

  - Refer to the IRS Publication 590-B, pg 13, or 

  - Contact your IRA custodian, or

  - Contact the Louisiana Baptist Foundation.