In 2007 Congress passed and the President signed a package of legislation which included a limited-time provision for qualified charitable contributions from Individual Retirement Accounts to charity, sometimes referred to as “Charitable IRA Rollovers.”
The original provision expired December 31, and the House of Representative adjourned for the holidays before completing its work on a package of tax extenders that included the Individual Retirement Account (IRA) rollover provision. However, Congress is expected to consider the package in January and possibly make the provisions retroactive to the beginning of 2008. If so, you have an unprecedented opportunity to help us.
Here’s how:
* Individuals aged 70 1?2 and older may transfer up to $100,000 per year directly from an IRA to charity.
* The charitable distribution counts toward Minimum Required Distribution requirements.
* Charitable distributions may be made in addition to any other charitable giving you may have planned.
* Please note that, since the funds in IRA accounts were deductible from taxable income at the time they were deposited, the distribution to charity can not generate an additional tax deduction. However, because the distribution from the IRA to charity avoids the taxation that would ordinarily occur, even taxpayers who don’t itemize their deductions can benefit from making such a gift.
The provision does include some limitations. For instance, distributions may not be used to fund Charitable Remainder Trusts or Charitable Gift Annuities, and state tax treatments may differ. And, despite the obvious benefits of this provision, there may be more tax-efficient ways for you to make a gift.
If you are interested in discussing your options under this unique provision, please feel free to call The Episcopal Diocese of Spokane Foundation at (509) 624-3191. As always, we recommend you seek the advice of your tax and/or legal counsel before deciding on a course of action.