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IRA and Pension Rollover Legislation Grants Seniors Unprecedented Giving Opportunity
To qualify
- The owner of the IRA account must be age 70 ½ or older;
- The gift must be made before January 1, 2008;
- Individuals may rollover up to $100,000 per donor per year;
- Gifts may be made in addition to any other tax deductible contributions.
An Example:
If an individual in the 35 percent tax bracket withdraws $100,000 from an IRA to donate to his favorite charity, he must claim the $100,000 as ordinary income and pay $35,000 in income tax, leaving $65,000 to fund his charitable contribution. Under this new legislation, an individual may roll over $100,000 directly from his IRA to Save the Children with no additional tax implications. This Charitable IRA rollover may also be used to meet all or part of the minimum yearly distribution requirements.
This new IRA rollover opportunity may have particular appeal if you
- Don’t itemize deductions;
- Already give at the 50 percent deduction limit;
- Have an income level that causes the phase-out of your exemptions;
- Want to avoid additional income that will increase Social Security income taxes.
This legislation makes the process simple and assures our Save the Children supporters that these gifts will not increase federal income taxes and state income tax in many cases. As always, we recommend you seek the advice of your tax or legal counsel to determine your best options.
To qualify for Charitable IRA rollover treatment, you must direct the IRA manager to transfer funds directly to Save the Children. Please contact us for easy instructions to transfer funds by check or wire transfer.
If you have questions about making a gift to Save the Children using your IRA, please contact the Office of Planned Giving by calling our toll-free number, 1-800-544-4470, or via e-mail at plannedgifts@savechildren.org.
Click here to learn more about planned giving
