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Financial Planning Tips

Test Your IRA Knowledge
(Updated: 8/16/2016)

Which of the following statements about qualified charitable distributions from an IRA is not true?

  1. The IRA owner must be age 70 or older.
  2. The distribution may satisfy all or a portion of the plan owner's required minimum distribution (RMD) for the year in which it was made.
  3. The annual contribution limit is $100,000.
  4. Distributions can be made to establish charitable gift annuities and charitable remainder trusts.
  5. Distributions cannot be made from a SIMPLE or SEP IRA.

Answer: D.

Under the PATH Act of 2015, the IRA charitable rollover provision was made permanent. According to the legislation, the funds must pass directly from the plan administrator to the charitable organization, which means that distributions may not be used to fund a charitable remainder trust or charitable gift annuity.

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