New Law Renews
IRA Transfers to Charity for 2014
the Health Care Law
The Tax Increase Prevention Act extends the provision that allows certain
IRA owners to make tax free distributions to charity.
The extension applies for the 2014 tax year. This means if the
law applies to you, the deadline to complete your transactions is Dec. 31.
Here are some key points about the extension:
If you are an IRA owner age 70½ or older you have
until Dec. 31 to make a qualified charitable distribution, or QCD.
A QCD is direct transfer of part or all of your IRA distributions to an
eligible charity. You may transfer up to $100,000 per year.
You may exclude the distributed amounts from your income. You can claim this
benefit regardless of whether you itemize your deductions. If you do exclude
the QCD from your income, you can’t also deduct it as a charitable
contribution on Schedule A if you do itemize.
You can count your QCDs in determining whether you meet the IRA’s required
The provision had expired at the end of 2013. The new law is retroactive for
2014. This means any eligible QCD in 2014 will qualify.
Not all charities are eligible. For example, donor-advised funds and
supporting organizations are not eligible recipients.
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Source: IRS Special Edition Tax Tip
Last May I
hosted a live webinar on Social Security Strategies and
Secrets you should understand and use as you contribute
and eventually take distributions from this program.
If you are interested in watching the VIDEO REPLAY you
click here. Kevin
New IRS Publication
Helps You Understand
the Health Care Law
There is a new publication that will help you learn about how the
Care Act affects your taxes.
IRS Publication 5187, Health Care Law:
New for Individuals and Families is now available on IRS.gov/aca.
While the health care law has several parts, this publication breaks down
what’s new for the 2014 federal tax return you will be filing in 2015.
This new publication provides important information for taxpayers who:
- Had health insurance coverage for the entire year
- Did not have health coverage for each month of the year
- Purchased health insurance from the Marketplace
- Might be eligible for an exemption from the coverage requirement
- Had advance payments of the premium tax credit sent to their insurance
- Is claiming the premium tax credit on their tax return
The publication includes a glossary that will help you understand new terms
related to ACA. It also addresses the new lines for reporting ACA
on Forms 1040, 1040-A and 1040-EZ.
Most people have qualifying health coverage, and all they will need to do is
simply check a box on their tax return. You can access
Publication 5187 at
IRS.gov/aca, along with other important information related to the health
You can also find it by typing "p5187" into the search window at the top of
IRS.gov page or "5187" in the Forms and Pubs search window on IRS.gov.
If you have comments or
questions on the information in these articles, as usual feel
free to call our offices at 502-426-0000.
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Regards, Kevin Roberts, CPA
President, Roberts CPA Group