Announcements
IRA Rollover Gifts Extended in 2008 and 2009
Congress extended a tax opportunity that allows donors to withdraw funds from their IRA, use the funds to make a charitable gift, and not pay income tax on the drawdown. The extension is for 2008 and 2009.
An IRA owner age 70½ or older can make a direct transfer of up to $100,000 (per year) to a charity. See IRS Sec. 408(d)(8)(A) for details.
Benefits:
– The donor does not pay taxes on the IRA rollover (because it is not counted as income to the donor).
– The IRA distribution may fulfill pledge requirements, and may be restricted as any other cash gift could be.
– Donors see the income tax benefit of a charitable contribution without needing to itemize their taxes.
Key Points:
– The distribution must be made directly from the trustee or custodian of the IRA. The donor can not take the distribution and then write a check to the charity they wish to support.
– The entire IRA distribution must qualify as a charitable deduction (no "quid pro quo" gifts i.e. dinner tickets, golf outings, etc.)
– The recipient charity cannot issue a tax receipt for the donation to the donor.
If you would like to make an IRA distribution gift, or if you have further questions, please contact info@cinjfoundation.org, or call 732 235-9436.
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