As of this writing, Congress has not decided whether to renew the charitable IRA rollover, or qualified charitable distribution (QCD), for tax year 2014. Since 2006, many donors age 70 ½ or older have used this option to exclude from taxable income qualifying charitable gifts transferred directly from their IRA to charity, including gifts to ministry. If Congress follows what has become its usual pattern, it will pass an extension in December that will apply through 2015 and be retroactive to January 1, 2014.
If you are considering a gift from your IRA for 2014 and are 70 ½ or older (on the date of the gift) and itemize your tax deductions, you may want to go ahead and make the gift up to the amount of your RMD (required minimum distribution). If Congress passes the extension and makes it retroactive, you will be able to treat the contribution as a rollover gift. If Congress does not pass the extension or make it retroactive, you will still be eligible to deduct the gift as an itemized deduction.
If you do not itemize or if you are making gifts in excess of your RMD, you may want to wait and see what Congress will do. If Congress does not pass an extension, you may want to make the gift from other resources. Of course you should always consult your tax advisor before making any contributions.
For more information or help answering questions you may have about making a gift with lasting impact, contact Jim Pennington, LCMS Foundation - Gift Planning Counselor.863-370-0305