Giving Money to a Charity with a Self-Directed IRA May Become Less Popular Soon

Tax-free distributions from individual retirement plans for charitable purposes
(sec. 408(d)(8))
 In general, the provision allows an exclusion from gross income for otherwise taxable
distributions from a traditional or Roth individual retirement arrangement (“IRA”) in
the case of qualified charitable distributions. The exclusion may not exceed $100,000
per taxpayer per taxable year. A qualified charitable distribution generally is any
distribution from an IRA made directly by the IRA trustee to an organization
described in section 170(b)(1)(A) (generally, public charities), other than a supporting
organization or a donor advised fund. Distributions are eligible for the exclusion only
if made on or after the date the IRA owner attains age 70-1/2 and only to the extent
the distribution would be includible in gross income (without regard to the provision).
Other statutory requirements apply.
 The provision was enacted in the Pension Protection Act of 2006, Pub. L. No. 109-
280, for distributions made in taxable years beginning before January 1, 2008.
 The provision was most recently extended by the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010, Pub. L. No. 111-312, for
distributions made in taxable years beginning before January 1, 2012. The 2010 Act
included a special rule permitting taxpayers to elect to have qualified charitable
distributions made in January 2011 treated as having been made on December 31,
2010, for certain purposes.

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