The charitable IRA legislation is back for a repeat
performance—don't miss this second-chance opportunity to make
tax-free gifts from your IRA!
There's good news for individuals aged 70½ or older with
individual retirement accounts. Thanks to the extended charitable
IRA legislation, you can once again make outright gifts using IRA
funds without tax complications.
If you are required to receive minimum distributions from your
IRA and you do not need the money for personal use, consider using
those funds as a charitable gift. While you cannot claim a
charitable deduction for the IRA gifts, you will not pay income tax
on the amount.
You may contribute funds this way if:
- You are 70½ or older
- Your IRA gifts total $100,000 or less each year in 2008 and
2009
- You transfer funds directly from an IRA
- You transfer the gifts outright to one or more public charities
(This excludes gifts made to charitable trusts, donor advised funds
and supporting organizations.)
The Benefits—Music to Your Ears
- In most cases, the transfer counts toward your minimum required
distributions.
- The gift generates neither taxable income nor a tax deduction,
so even those who do not itemize their tax returns receive the
benefit.
- You may transfer up to $100,000 directly from your IRA in 2008
and 2009.
- The distributions may be in addition to or fulfill any
charitable giving you have already planned.
The Next Step
Be sure to contact tax professionals and your IRA administrator if
you are considering a gift under this law. Feel free to call Susan
Damiani at (718) 990-7562 or by e-mail at damianis@stjohns.edu with
any questions
Important
information about making a gift