12/18/2014

Tags: Philanthropy, Federation

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Alert: IRA Charitable Rollover Renewed Through December 31, 2014

We are pleased to inform you that federal legislation renewed this year permits the use of tax neutral Individual Retirement Account (“IRA”) Charitable Rollover distributions to the Federation or other qualified charities through December 31, 2014.

The principal rules for such distributions from an IRA to the Federation provide the following:

  • You must be 70 ½ or older as of the date of distribution.
  • Each spouse may transfer as much as $100,000 from his/her IRA for 2014 to the Federation or other qualifying charities.
  • Such transfers will be excluded from your income for federal tax purposes and not taxed.
  • Your qualified charitable distribution may be includable in your taxable income for state and local tax purposes. An offsetting charitable deduction may not be available. In all likelihood, the State of Ohio will pass conforming legislation soon after the beginning of 2015 excluding such distributions from Ohio income tax consequences as well. 
  • Distributions may count against the Required Minimum Distribution mandated for IRA income beneficiaries.
  • Distributions cannot be made to Donor Advised (Philanthropic) Funds, supporting organizations, private foundations, charitable remainder trusts, or in exchange for charitable gift annuities.
  • ACT NOW as the legislation will not be extended beyond December 31, 2014.

To obtain this benefit and provide support to the Federation, please instruct your IRA administrator to transfer funds directly to the Federation from your IRA. If you withdraw the funds from the IRA first and then contribute them, you will lose this special tax benefit.  We urge you to capitalize on this opportunity to strengthen our Jewish community by supporting the annual Campaign for Jewish Needs, creating a FOREVER Fund or Lion of Judah Endowment (LOJE), or establishing an endowment for a selected area of philanthropic interest. 

For additional information, please call Alan Gross at 216-593-2818 or email agross@jcfcleve.org.  For a sample letter of instruction to your IRA administrator, Frequently Asked Questions about IRA Charitable Rollover distributions, and the Federation's IRS determination letter click here.  Of course, we urge you to seek the advice of your professional advisor before you make a Charitable IRA Rollover gift.

The views expressed above are not intended, nor may they be relied upon, as legal, accounting or other professional advice. 

The Jewish Federation of Cleveland (license #CH22328) is registered to solicit charitable donations within Florida and provides disclosure as required by Chapter 496 of the Florida Solicitation of Contributions Act as follows:

“A copy of the official registration and financial information may be obtained from the division of Consumer Services by calling toll-free (800-435-7352) within the state or by visiting www.800helpfla.com.   Registration does not imply endorsement, approval or recommendation by the state.”

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