Charitable IRA Legislation Passed!
The charitable IRA legislation is back for a repeat performance—don't miss this second-chance opportunity to make tax-free gifts from your IRA!
There's good news for individuals aged 70½ or older with individual retirement accounts. Thanks to the extended charitable IRA legislation, you can once again make outright gifts using IRA funds without tax complications.
If you are required to receive minimum distributions from your IRA and you do not need the money for personal use, consider using those funds as a charitable gift. While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount.
You may contribute funds this way if:
- You are 70½ or older
- Your IRA gifts total $100,000 or less each year in 2008 and 2009
- You transfer funds directly from an IRA
- You transfer the gifts outright to one or more public charities (This excludes gifts made to charitable trusts, donor advised funds and supporting organizations.)
The Benefits—Music to Your Ears
- In most cases, the transfer counts toward your minimum required distributions.
- The gift generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.
- You may transfer up to $100,000 directly from your IRA in 2008 and 2009.
- The distributions may be in addition to or fulfill any charitable giving you have already planned.
Be sure to contact your tax professional or IRA administrator if you are considering a gift under this law. Also feel free to call Brad Schreiber at (585) 395-5161 or giving@brockport.edu.
This page is maintained by the Division of Advancement. Call us at (585) 395-2451 or e-mail us at alumni@brockport.edu
