IRA CHARITABLE GIVING

If you are 70½ or older, you can distribute any amount up to $100,000 per year from your Individual Retirement Account (IRA) to the Jewish Federation of Greater Hartford, free from income tax. This may be a good choice if you are:

  • Over 70½ and now receiving minimum IRA distributions – but don’t need the extra income.
  • Want to experience the joy of making a major gift during your lifetime.

On December 18, 2015, Congress passed – and President Obama signed – the PATH Act, which means you now permanently have the ability to donate your IRA assets to charity each year, free from federal tax.

Please contact your tax or financial advisor to see whether you qualify. For more information on charitable IRA distributions, please email Cheryl Wolmer or call her at 860-727-6105.

An Example
Ms. Katz is 75 years old, and she has accumulated about $2,000,000 in her IRA accounts. She has other sources of wealth and plans to leave a sizable estate to her heirs and to charity. Under this law, she can transfer up to $100,000 of her IRA funds tax-free in 2016. In addition, if Ms. Katz is married, her husband can make similar gifts from his own IRA accounts.