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The IRA Charitable Rollover, which was first enacted on August 17, 2006, as part of the Pension Protection Act of 2006, has been reinstated for 2011. The IRA Charitable Rollover permits taxpayers age 70½ and older, who are required to make annual distributions from their IRAs, to designate up to $100,000 of those distributions directly to charitable organizations without counting them as part of their AGI and, consequently, without paying taxes on them.
Charitable contributions from an IRA must go directly to a public charity. Distributions must be made directly from the IRA trustee, payable to, for example, Saint John’s Foundation. In order to benefit from the tax-free treatment, donors must obtain written notice of each IRA rollover contribution from each charity. Distributions can only be made from traditional or Roth IRAs.
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