Tax Update Charitable Extenders Bill Passes Tax-Free Gifts

from IRA accounts for 70+ IRA Owners

December 2014

Congress has been promising action on a number of tax provisions that expired at the end of 2013.
After much delay, on December 16th, the Senate passed HR 5771 which included a one year extension
of expired tax provisions retroactive to January 1, 2014. This reauthorizes the IRA charitable rollover
through December 31, 2014. Donors age 70 1/2 and older may transfer up to $100,000 from their
IRA to a qualified public charity. The transfer will be made free of federal income tax and the gift
qualifies for the donor's 2014 required minimum distribution (RMD).
IRA owners that are over age 70 and want to make a gift from their IRA accounts have a few days left
to take advantage of this provision. The bill that the Senate passed expires (again) on December 31st,
2014, and it is not clear what will happen in 2015.
Charitable gifts made directly from an IRA account may be used to satisfy Required Minimum
Distribution (RMD) requirements, can be an income tax planning tool, might reduce AGI, and are an
efficient way to make charitable gifts. Many of our clients have used this provision in the past to
generously support churches, community groups and other charities that are doing charitable work that
is important to them. You may want to consult with your CPA or a qualified advisor to see if this
might make sense in your personal situation.
To editorialize for a moment it is extremely frustrating that Congress waited until this late in the year
to pass this bill. Many families have been waiting and delaying decisions on their RMDs for 2014 in
hopes that this bill might pass. I give our legislators a C- grade for their lack of timeliness and for
creating what will certainly be a last minute stampede to take advantage of the charitable provision.
2All complaining aside we will do all we can to help our clients implement any charitable gifts they
might want to make from their IRA accounts before the year-end deadline. If we have not already
discussed this, and you are over 70, we would be happy to review this strategy with you.
And, undoubtedly, many charities are delighted that this provision has passed as it may lead to a surge
in last-minute giving. There are many great groups doing outstanding and vital work to make our

Tax Update Charitable Extenders Bill Passes

December 2014
Gevers Wealth Management, LLC
Page 2
communities better, and it is gratifying to see money go to many of these deserving causes. As
financial advisors, we feel privileged to play a small part in helping facilitate these important gifts.
(Pasted below is an informational flyer from World Vision with some more details on the charitable
extender provision.)
Merry Christmas to you and your families!
Warm regards,

William R. Gevers
Financial Advisor
PS: We have been repeatedly asked by clients if they could share these e-mail notes with their friends
or neighbors. Please feel free to forward this with the stipulation that it may only be forwarded if done
so in its entirety with no portions omitted. We would be delighted to share our comments and opinions
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Copyright 2014 William R. Gevers. All rights reserved.

Gevers Wealth Management, LLC

5825 221st Place SE
Suite 102
Issaquah, WA98027
Office: 425.902.4840
Fax: 425.902.4841
Email: wgevers@geverswealth.com
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planned giving

Give a gift
from your IRA

Oppo

r t uni

ty
exp
D ece ire s
mber
31

tax free

The IRA Rollover Provision allowing you to make tax-free charitable

gifts from your IRA has been extended for 2014. Right now, outright gifts
from your IRA totaling up to $100,000 per year may be given tax free to
qualified charities such as World Vision. But this opportunity expires on
December 31, 2014, so youll want to take action today!

Some important conditions

for a charitable IRA rollover:
Give up to $100,000 tax free
And do not forget to do
good and to share with
others, for with such
sacrifices God is pleased.
Hebrews 13:16 (NIV)

Qualifies as your minimum required distribution

May only be made from traditional IRAs and Roth IRAs
Donor must be age 70 or older
Must be an outright gift made directly to the qualified public charity
Gifts must be completed by December 31, 2014
If you receive any benefit from the gift, it does not qualify

This presents a significant opportunity if you:

Hold assets in your IRAs that you do not need, and you wish to
make a large lifetime gift
Wish to give more than the deductibility ceiling (50% of AGI)
Are subject to the 2% rule that reduces your itemized deductions
Do not itemize
Plan to leave part or all of your IRA to World Vision at death

To take advantage of this opportunity

call 1.800.426.5753 or email plannedgiving@worldvision.org

Planned Giving
P.O. Box 9716
Federal Way, WA 98063-9716
1.800.426.5753
plannedgiving@worldvision.org
worldvision.org/mylegacy
GP147539_1214 2014 World Vision, Inc.

This summary was prepared for educational purposes and is not intended as
professional legal or tax advice. Consult your own legal or tax professional(s)
regarding your particular situation.