Updated News on a Popular Giving Opportunity

Author: Stephanie Miller
Published: October 30, 2014
This year is shaping up as yet another cliffhanger for our brothers that want to take advantage of the IRA charitable rollover, a popular giving opportunity that expired on December 31, 2013. The provision allowed donations of up to $100,000 by individuals age 70½ and older to be made to the Phi Psi Foundation and other qualified charitable organizations without incurring federal income tax on the withdrawal from their IRA account.

Over the past several years, many brothers have taken advantage of the IRA charitable rollover provision to support the brotherhood. Congress is likely to extend the expired rule, as it has on multiple occasions, but not before the upcoming November election.

Until Congressional results are certain, you may consider speaking to your advisor to see how best to benefit Phi Psi. In the interim, if you wish to make a gift from your IRA in 2014, you may still be able to avoid tax on direct transfers if the proposed legislation passes and it applies retroactively. During the previous year-end waiting game, Congress on January 1, 2013, restored the IRA gifting rule retroactive to January 1, 2012, and lawmakers provided some temporary relief for those caught in the year-end uncertainty.

Again, there is no certainty of what will occur so talking with your advisor about what options make the most sense for you is important. As always, the Foundation staff and volunteer leadership are following the matter closely and will notify donors and the general brotherhood immediately if the legislation passes.
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