The IRA Charitable Rollover
The recently passed Pension Protection Act of 2006 provides a new giving option for those who wish to help grow our congregation’s/organization’s endowment fund. Through this new legislation, individuals with traditional and Roth IRAs can now make direct transfers from such plans to The (insert fund name) without having to take such distributions into their taxable income.
Some qualifications apply:
- Individuals must be 70-1/2 or older on the date of the gift.
- Individuals may give up to $100,000 per year without having to count the distribution / charitable gift as taxable income, but there is no income tax deduction for the gift.
- Charitable gifts must be made outright to the endowment fund by the IRA plan administrator. Lifetime income gifts and gifts to donor-advised funds and supporting organizations do not qualify for this incentive.
- This program is effective for distributions beginning August 17, 2006, through 2007.
Given these parameters, the charitable rollover provision provides the most opportunity for those who are required to take their required minimum distributions from an IRA, but would prefer to direct it to charity instead. These individuals may have either maxed out on tax deductions or don't itemize.
The Westwood Lutheran Memorial Foundation is available to receive many types of gifts, including charitable distributions from IRAs. For more information about giving to our endowment fund, please contact John Steinke, 763-544-7345.
|
