The Community Foundation for Northeast Michigan is reminding anyone who has an IRA and is over 70 ½ years of age…that you must make your Required Minimum Distribution by December 31st.
As of December 2015, the IRA Charitable Rollover was passed by congress and signed into permanent law by the president.
The rollover allows taxpayers age 70 ½ or older to transfer up to $100,000 annually from their IRA accounts directly to charity without having to pay a tax penalty.
According to the Community Foundation for Northeast Michigan, Executive Director, Barb Frantz IRA holders must speak to their tax or professional advisor to make their Required Minimum Distribution count for 2016.
Frantz also said your distribution can include anything charitable.
“They can make a gift to any charity, they can make it to their church, they can make it to a non–profit hospital, they can make it to any charitable organization like the humane society, or the boys and girls club, art in the loft any of the charitable organizations out there.
But the requirement for this particular IRA Charitable Rollover is if you want that gift to be counted in 2016 you have to make that gift in 2016,” Frantz said.
Frantz warns a lot of the financial institutions that hold IRA’s may be closed on Friday.
If you haven’t made your distribution you need to contact your IRA administrator immediately to make sure you get your distribution counted for 2016.