We just launched our new weekly Internet radio program called “Tuesday with Tom”. New episodes will be available on Tuesday mornings by 8am.
The recently passed Protecting Americans from Tax Hikes (PATH) Act of 2015 made Charitable IRA rollover legislation permanent for 2015 and future years.
With the Charitable Rollover IRA, you can make a contribution to a public charity directly from your IRA (or Roth IRA). To qualify:
- you must be at least age 70 ½ on the date of the contribution
- the contribution may not exceed $100,000
- the contribution has to be made directly by the IRA custodian to the charity.
To take advantage, simply direct the custodian of your IRA to make the charitable contribution. The portion of the IRA so contributed (up to $100,000) never comes into your income.
Please note, a 401k or other retirement plan is not eligible unless it is first rolled into an IRA.
The U.S. Supreme Court recently ruled that inherited IRAs are not protected in bankruptcy.
Although this ruling does not affect your own IRAs (your retirement funds are still protected if you file for bankruptcy) it will cause problems for any child who inherits an IRA from you and files for bankruptcy. The Court has ruled that the inherited IRA will not be protected from the child’s creditors.
Here is the link to my Estate Planning presentation “How to Avoid the Six Most Common Estate Planning Mistakes” that was on the Financial Fitness Show After Hours program on May 13, 2014.