A new law allows individuals 70½ or older to transfer monies from individual retirement accounts (IRA) to charitable organizations without having to pay tax on the distribution.

To qualify for this law:

  • You must be 70½ or older.
  • You can transfer up to $100,000 to one or more charities per year.
  • You will not need to pay income taxes on the withdrawal that is a gift.
  • Your gift can satisfy the required minimum distribution for the year.
  • You need to make sure that the gift amount is distributed directly from your IRA to your charity.

This law will help planning for many donors who find they would like to donate their required minimum distributions.

For more information on how to make a charitable gift using your IRA, please contact your IRA administrator, your tax advisor, or APF at (202) 336-5843.