(December 22, 2014) President Obama signed the Tax Increase Prevention Act of 2014 into law on December 19th extending a number of expired or expiring provisions including the IRA qualified charitable distribution (QCD) provision. The QCD provision which had previously expired on December 31, 2013 has now been extended to December 31, 2014. As a result, IRA owners (and IRA beneficiaries) who have attained age 70½ may make a direct transfer of a tax-free qualified charitable distribution of up to $100,000 (per year) from their IRAs to qualified charitable organizations for tax year 2014. Because the new law does not contain any transitional rules allowing a 2014 QCD to be made in 2015, taxpayers have only a handful of business days to complete a 2014 QCD before the end of 2014.
(submitted by Convergent Retirement Plan Services, Inc.)