IRA Charitable Rollover

Now it’s easier than ever to make the gift of a lifetime 

IRAs can qualify for tax-free charitable distributions.

 
The Chautauqua Region Community Foundation can help turn your individual retirement accounts (IRAs) into tax-saving charitable gifts. New tax benefits allow more people to experience the joy of giving during their lifetimes.
 
You can give more for less.
Thanks to recently passed legislation, American seniors can make the gift of a lifetime by giving their IRAs to charity without federal tax penalty. So your retirement funds can go further than ever before.
 
For years, estate planners have recommended that retirement assets may be the most tax-effective asset in larger estates to distribute to charity. These assets are not only vulnerable to heavy taxation as part of an estate but also can be taxed again as income in respect to a decedent on the tax returns of heirs.
 
Until now, there was a disincentive for retirees to give IRAs to charity during their lifetimes because withdrawals from IRAs were subject to income tax—even those given to charity.
 
Tax law.
On October 3, 2008 President Bush signed the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, which extended an excellent charitable planning opportunity for 2008-2009.

If you are over 70 ½ you are eligible to make an IRA charitable rollover to public charities such as the Chautauqua Region Community Foundation. And the good news is that your IRA distribution to charity will be similar to other IRA rollovers - it will not be included in your Federal taxable income.

While there is no added deduction for an IRA charitable rollover, avoiding up to $100,000 of taxable income may save substantial income taxes not otherwise available. An added bonus is that your IRA charitable rollover this year will qualify for all or part of your required IRA minimum distribution.

Your IRA charitable rollovers during 2008 or 2009 could be $1,000, $5,000 or any amount up to $100,000. We recommend that you discuss the benefits of an IRA rollover with your CPA or tax advisor.

There is so much more we’d like you to know. To learn more, contact Randy Sweeney, rsweeney@crcfonline.org or 661-3390.

 

The information provided here is based on continuing analysis of the Pension Protection Act of 2006. Every effort has been made to ensure accuracy of the answers to these questions. However, due to the complexity of the bill and the fact that many of these provisions introduce issues that are new to the Internal Revenue Code, this information may be subject to change. It is not a substitute for expert legal, tax or other professional counsel and we strongly encourage donors to work with their professional advisors to determine the impact of this legislation on their particular situations. This information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Co.

The information provided here is based on continuing analysis of the Pension Protection Act of 2006. Every effort has been made to ensure accuracy of the answers to these questions. However, due to the complexity of the bill and the fact that many of these provisions introduce issues that are new to the Internal Revenue Code, this information may be subject to change. It is not a substitute for expert legal, tax or other professional counsel and we strongly encourage donors to work with their professional advisors to determine the impact of this legislation on their particular situations. This information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Co.