---

Your IRA Can Benefit The Community

IRA Rollover Extension Signed into Law!
As you know, President Bush signed into law the Emergency Economic Stabilization  Act of 2008 (H.R. 1424), which is the economic recovery package that earlier passed the House and the Senate.   In addition to the provisions specifically related to the financial markets, the bill reinstates the IRA Charitable Rollover until the end of 2009.

The IRA Charitable Rollover, originally passed in 2006 and which had expired on December 31, 2007, permits donors age 70 ½ or older who own traditional or Roth IRA retirement savings accounts to make gift transfers from such an account to qualified nonprofit charities – without first counting it as income and paying income tax. 
The provision is retroactive for calendar year 2008 and extends through
December 31, 2009.
 
Among the provisions of the IRA Charitable Rollover:

•  Traditional and Roth IRAs are eligible.  Other retirement plans, such as pensions, 401(k) plans and others are not eligible. 
 
•  Only the IRA trustee can transfer gift amounts to a qualified organization.  If IRA owners withdraw funds and then contribute them to charity separately, amounts withdrawn will be included in the donor’s gross income. 
 
•  No charitable deductions are allowed, but gift amounts will not be included in the donors’ incomes.  IRA gifts may satisfy charitable pledges, according to the IRS. 
 
•  IRA gifts may not exceed $100,000 and must be made before 2010.  Up to $100,000 may be distributed for both 2008 and 2009.  The “ceilings” on contribution deductions (50 percent of adjusted gross income for cash, 30 percent of AGI for capital gain assets), do not apply to IRA gifts.  

•  IRA gifts cannot be made to charitable remainder trusts or other “life income gift” arrangements.  Transfers are not permitted to donor advised funds or “supporting organizations.”

The Community Foundation is available to answer questions any potential donor may have about the law.  Those interested in learning more may call or email Cynthia Clegg at 860.347.0025 ext. 205, Cynthia@MiddlesexCountyCF.org or Mary Ann Lambert at ext. 204, Finance@MiddlesexCountyCF.org. 

 
We welcome conversations with good people who want to do great things.

---