Support UCS with an IRA Rollover Gift
The popular charitable IRA rollover is back!
There's good news for individuals aged 70 1/2 or older with individual retirement accounts (IRAs). Thanks to a recent extension of special legislation for tax-years 2008 and 2009, you can once again make tax-free charitable gifts using funds from your IRA. Gifts must be made by December 31 each year, so keep reading for more information and act now to take full advantage of this special giving opportunity.
As you may know, retirement plan assets are typically subject to a heavy tax burden. If you are age 70 1/2 or older and required to take minimum distributions from your IRA and you do not need the money for personal use, consider using these funds to make a charitable gift to UCS. While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount.
To Qualify:
- You must be 70 1/2 or older at the time of the gift.
- Qualified distributions must be made by December 31 of each year in 2008 and 2009.
- Gifted funds must be transferred DIRECTLY from a traditional or Roth IRA account to the charity by your IRA administrator. Funds that are withdrawn by you and then contributed do NOT qualify.
- Gifts from 401k, 403b, SEP and other retirement plans do not qualify.
- Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.
The Benefits:
- You may transfer up to $100,000 of gifts directly from your IRA each year in 2008 and 2009.
- In most cases, qualified charitable distributions count toward your minimum required distributions.
- The charitable distribution generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.
- Gifts from your IRA may be in addition to or fulfill any charitable giving you have already planned.
The Next Step:
Be sure to contact tax professionals and your IRA administrator if you are considering a gift under this law. Feel free to contact Adam Kessler at 800-666-8276 x8040 or akessler@ucsusa.org with any questions.
