Tax-Free Gifts from IRA Accounts have been Re-authorized!
Congress has re-authorized legislation that allows donors to make charitable gifts from their IRA accounts through December 2011 without incurring income tax on the withdrawal. If you are age 70½ or older and are required to take minimum withdrawals this may be a great way to make a gift to one or more qualified charities. While you cannot claim a charitable deduction for IRA gifts, you will not pay income tax on the amount.
- You must be age 70½ or older at the time of the gift.
- Transfers must be made from a traditional or Roth IRA account by your plan provider DIRECTLY to the charity. Funds that are withdrawn by you and then contributed do NOT qualify.
- Gifts from 401k, 403b, SEP and other retirement plans do not qualify.
- Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.
Benefits - Qualified charitable distributions:
- Can total up to $100,000 in each tax year (if your spouse has a separate IRA account, you can each contribute up to $100,000 per tax year)
- Can be excluded from your gross income for federal income tax purposes on line 15a of Form 1040 (no charitable deduction is available, however)
- Can be used to satisfy your Minimum Required Distribution (MRD)
- You are subject to limitations on your itemized deductions.
Note: Our tax ID # is 23-135-2626
For more information on the web, you can visit the Planned Giving site, or the Make a Gift page.
You may also contact:
Mary Theresa Shevland, SSJ
Director of Planned Giving
at 215.753.3617 or by e-mail at email@example.com.