Starting in 2006, persons 70 ½ years old and up were permitted to directly contribute up to $100,000 from a traditional or Roth IRA to a public charity without having to count the gift as taxable income. Many donors took advantage of this opportunity and were pleased when Congress extended this law through 2009. But last year, donors were left in limbo as to whether or not they could use the charitable rollover to save on their taxes. It wasn’t until Dec 17th that Congress decided to extend the benefit through 2011.Congress is allowing taxpayers to make such gifts until Jan. 31 of this year and still count it as a 2010 distribution. But that doesn’t help those folks who already took their required payouts in 2010, because they were worried that Congress wasn’t going to extend the law. The IRS has determined that those folks are simply out of luck. They can’t retroactively roll it over to a charity.
Visit our site for more information about the tax benefits of giving to charity.
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