IRA Rollover Gifting Opportunity expires December 31
Tax legislation which includes the extension of the IRA Rollover was signed into law December 17, 2010, returning an opportunity for individuals to make a charitable gift by directing a transfer from a regular IRA to qualified 501(C)(3) organizations of their choice. The extension expires December 31, 2011. All gifts must be completed by that date.
Here are some common questions and answers that might be helpful to if you are interested in making a gift to St. Michael:
Who qualifies? Persons who are 70½ or older may direct an amount up to $100,000 per individual or $200,000 per couple (with separate annuities) without incurring a taxable event. The gift would qualify for the annual required minimum distribution.
How does it work? The IRA owner makes a written request to the IRA administrator to make a gift to an organization of his/her choice including his/her congregation or other 501(C)(3) ministry/charity. The donor would also notify the receiving organization of the forthcoming gift.
What are the benefits of a donor’s gift from an IRA? Donor avoids taxes when gift is completed prior to December 31, 2011. Donor may fulfill a pledge with a transfer from an IRA. Donor’s gift qualifies for required minimum distribution. Donor takes advantage of legislation that encourages gifts and makes a difference in the lives of others.
Should I be aware of other information or restrictions? Yes. The donor pays no taxes on the gift amount; at the same time, however, the donor may not claim a charitable deduction for a gift made through an IRA rollover since it is not received as income. Additionally, distributions from an IRA may not be used to fund a life income agreement, such as a Charitable Gift Annuity; nor transferred to a Donor Advised Fund.
