New charitable IRA rollover changes allow
tax-advantaged gifts directly to charities
IRA ROLLOVER IN EFFECT UNTIL DECEMBER 30,
2007
Recently, the Pension Protection Act of 2006 was signed
into law. This legislation
contained several initiatives for philanthropy, including the ability for some
donors to transfer money directly from their IRA to charity, without incurring a
taxable distribution.
- Donors
must be 70 ½ or older
- Up
to $100,000 can be transferred before December 30, 2006 and up to an
additional $100,000 can be transferred by December 30, 2007.
- Transfers
must be from a traditional or Roth IRA
- Gifts
to qualified charities must be outright gifts only, and cannot apply to:
- Life
income gifts such as charitable gift annuities
- Donor
advised funds, private foundations or supporting organizations.
- Gifts
to charity count against the required minimum distribution but are not
included in taxable income.
- Transfers
to qualified charities from IRA’s can be used to satisfy existing pledges.
As the window to take advantage of this legislation is
brief, contact your retirement fund custodian to discuss transfer details today.
If you would like more information on the charitable IRA
rollover please email Daniel Petrocelli,
Director of Planned Giving or
call Toll Free 877 252 7510.
A sample letter
of instruction to your fund custodian.
|
 |
|
Planned Giving
|
|
|
|
You may also be interested in:
|
|
|
|
