Year-End Opportunity for IRA Donations

This just in! Those over age 70 1/2 who may wish to donate to KNOM in the last few days of 2014 directly from their IRA now have an extra incentive to do so: special tax deductions.

Per legislation signed into law on December 19, 2014, it is, once again, possible to make tax-favored charitable gifts directly from traditional IRA and Roth IRA accounts and reap a tax deduction benefit in the process.

The December 19th legislation extends this special window to include gifts completed this calendar year (2014). IRA gifts completed by December 31, 2014 will count toward the required withdrawal amounts for IRAs.

Those who elect to donate to KNOM Radio directly from traditional IRAs or Roth IRAs can avoid federal income tax for gifts totaling up to $100,000. Savings on state income taxes may also be possible.

If making these types of IRA donations, it’s important not to withdraw funds prior to the gift but, rather, to distribute the funds directly from an IRA to the charity. Those who have check-writing privileges on their IRA accounts may find this the most efficient way to make gifts.

As always, feel free to contact our business department or consult your IRA administrator or accountant for more information.