IRA Rollover – President Obama and Congress Have Extended Tax Cuts for Two More Years.
Reinstatement of the exclusion for direct charitable IRA distributions
Prior to enactment of this legislation, this special exclusion expired as of December 31, 2009. The new law not only reinstates the exclusion for 2010 through 2012, it also permits IRA holders who make qualifying distributions from their IRAs to charity in January of 2011 to treat the distribution as if it were made in 2010. Below is a description of how the exclusion works. Gifts need to be transferred by January 31, 2011 for crediting in 2010. Consult your tax advisor or IRA custodian. For assistance, call Barry Steger at 501.580.9001
The following limitations apply:
- The donor must be age 70 1/2 or older.
- The cap on annual IRA rollovers is $100,000.
- The contribution must be a direct gift to a charity (no planned gifts).
- Since retirement assets like IRAs are the most highly taxed portion of one’s estate–up to 70 percent–you may find it advantageous to move these assets out of your estate now; but please consult with your financial advisors before doing so. This new legislation provides an ideal alternative for IRA funds that are not currently needed, that will be taxed either now or later, and could be used for good charitable purposes today.
The following are examples of people who could potentially benefit from this legislation:
- An individual looking for a simple and easy way to make a donation, especially at the end of the year.
- An individual who takes the standard deduction on their federal income tax return.
- An individual who is a Social Security recipient.
- An individual considering a major gift, but waiting for a favorable opportunity to do so.
- A generous individual who wants to give beyond the 50 percent adjusted gross income limitation.
- Consult your tax advisor before making such a decision; each individual’s situation is unique.
- Also, check with your advisor regarding possible state tax implications.
By rolling over or donating IRA funds to a ministry, the holder can bypass the taxes, and know that their good stewardship is helping to change lives now and for eternity.The process is as simple as making a routine stock gift donation. You just instruct your IRA administrator to make a distribution to the charity (or charities) of your choice. For IRA gifts to please use the IRA Rollover Gift Notification form to let us know that you are making such a gift.
Click here now for this printable IRA notification form and fax cover sheet.
For answers to your questions and more complete information on this exciting new opportunity to alleviate a potential tax burden and make a significant gift to help accelerate the work of Spark of Life, please call. This special IRA rollover opportunity is available for a limited time, so please contact us today if we can help you.