1-800-395-1087
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 Remembering Son with Tribute BrickLearn how Jeff donated his retirement plan. |
Lifetime Gift from a Retirement Account
(Complete gift description)
A new tax law passed in 2010 reinstated the option allowing people 70 ½ and older to make tax-free transfers from their IRA through Dec. 31, 2011, provided that the money is transferred directly to a qualified charitable organization from the IRA.
The Internal Revenue Service requires people age 70 ½ and older to take a required minimum distribution (RMD) from their IRA each year, even if they do not need the income. These mandatory annual withdrawals are subject to ordinary income taxes. By making a charitable contribution directly from your IRA, you can satisfy your RMD requirement without reporting additional income. This provision may be especially attractive for retirees who don't need all of the income from their IRA.
The law applies only to traditional, rollover, and Roth IRAs. The maximum amount of a taxpayer's qualified charitable distribution must not exceed $100,000 per tax year. Under this tax provision, the distribution from the IRA must be made to a qualifying charity; private foundations and donor-advised funds are not eligible. The Pension Protection Act of 2006 introduced this provision, which was most recently extended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
It is also important to note that the gifts made must be outright – the donor cannot use the distribution to fund a life-income gift such as a charitable gift annuity.
What you will need to make the gift transfer:
- A letter of instruction given to your financial planner, plan administrator or custodian with your gift plan.
- Please also notify us of your gift plans so we may properly acknowledge your generosity.
For more information
E-mail us, complete the personal illustration form or call us at (800) 395-1087 so that we can assist you through every step of the process.
