Phone 901-374-0400
Tzedakah
Your Charitable Giving Partner
6560 Poplar Avenue, Memphis, TN 38138
IRA Charitable Rollover - 2010 and 2011
You may have heard....
The newly enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 makes the IRA Charitable Rollover available for 2010 and 2011.
If you are 70 ½ or older, you may make a gift of up to $100,000 per year to a 501(c)(3) public charity from your IRA with no federal income tax impact, and your gift will be counted toward your required minimum distribution. To obtain this benefit, you must instruct your IRA administrator to transfer funds directly to the charity. If you withdraw the funds from the IRA first and then contribute them to the charity, you will lose the tax benefit.
Please note: Your direct contribution cannot be made to donor advised funds, supporting organizations, split-interest trusts or in exchange for gift annuities.
Additional details: Unlike a cash withdrawal from your IRA, your direct contribution will be excluded from income for federal purposes and not taxed. It will not be eligible for a charitable tax deduction, but it will not count toward the annual percentage limitation on your other deductible gifts. Your qualified distribution may be includable in your income for state and local tax purposes, and an offsetting charitable deduction may not be available.
The information in this article is not intended, and may not be relied upon, as legal, accounting or other professional advice.
