Charitable IRA Rollover Extended

December 05, 2008

As part of the $700 billion economic bailout bill (H.R. 1424), signed by the President on Friday, October 3, 2008, Congress included a two-year extension of the IRA Rollover provision. This provision, made retroactive to January 1, 2008, will apply to gifts made from that date through December 31, 2009.

Specifically, this legislation allows anyone older than 70 ½ years of age to make a charitable gift, up to $100,000, from their traditional (individual retirement account – IRA) or Roth IRAs without paying federal taxes on the disbursement for both 2008 and 2009. Rather than showing the gift as a tax deductible event, the entire gift is excluded from taxable income; however, such gifts do count toward any Required Minimum Distributions.
Some highlights of the IRA Rollover provision are:
·         Only donors age 70 ½ or older may take advantage of the provision.
·         The maximum amount that can be rolled over tax-free each year is $100,000.
·         The provision only allows for direct gifts to charitable organizations and churches.
·         To qualify, the distribution MUST be made directly from the Trustee of an IRA to the charitable recipient. Donors should not take the distribution themselves and subsequently write a check to charity.
"The extension of the Charitable IRA rollover provision is a wonderful way to make a gift to your local church or favorite UM ministry," states Susan Peters, Gift Planning Director at California-Nevada United Methodist Foundation. 
Contact Peters toll free at 888-789-7374 or to learn more about the IRA tax incentive, or to make a charitable gift to the California-Nevada United Methodist Foundation.
All gifts made in 2008 have to be given on or before December 31, 2008.