TAX BREAK APPROVED FOR CHARITABLE GIFTS
Charitable IRA Portfolio
Make the Gift of a Lifetime
Turning Retirement Accounts into Charitable Good
There is good news for community foundation donors in their 70s—and for the communities they care about. A new law makes it possible to give individual retirement account (IRA) assets to charity through 2011, free from federal tax. Prior to 2006, all lifetime distributions from IRAs were taxed—even those given to charity.
This means that, now, our donors can give far more with less. This may be an attractive giving option for you if you are:
- Over 70½ and now receiving minimum IRA distributions—but do not need the extra income.
- Interested in making a significant lifetime gift.
Example
Mr. Smith, age 75, has accumulated approximately $2,000,000 in his IRA accounts. He has other sources of wealth and has plans to leave a sizable estate to his heirs and charity.
Under the new law, Mr. Smith can create a fund at the community foundation to address the causes he cares about most by transferring IRA funds tax free. Mr. Smith can transfer up to $100,000 in 2011 and another $100,000 in 2012. In addition, if Mr. Smith is married, his wife can also make similar gifts from her IRA accounts. |
Through 2011, the new law allows those age 70½ and older to transfer up to $100,000 from an IRA to charity this year—and another $100,000 next year—tax-free. If married, each spouse can transfer $100,000 per year from his or her IRA.
Using IRA assets to make a gift during your life, as opposed to giving via bequest in your will, enables you to experience the joy of making a major gift.
“We’re ready to help our donors take advantage of this legislation and make gifts during their lifetimes. Our personalized service and local expertise helps donors address the issues most important to them,” said Virginia Frantz, CEO of The Montgomery County Foundation, Inc.
For more information on the charitable giving legislation and the Charitable IRA opportunity, please contact Virginia Frantz at (610) 313-9836 or visit our website at www.mcfoundationinc.org.
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