NEW Charitable IRA Rollover
| Gifts of Cash | Gifts
of Securities | Gifts of Property
NEW LAW BRINGS
NEW OPPORTUNITIES
The IRA Charitable Rollover is Here!
Congress recently passed important legislation offering
you new opportunities for fax-free charitable giving.
The Pension Protection Act (PPA) of 2006 was recently
passed to strengthen America’s retirement system
while also encouraging additional charitable giving.
The new law includes incentives for those 70-1/2 year
of age and older who would like to make charitable gifts
from potentially taxable Individual Retirement Account
(IRA) funds.
The IRA Charitable Rollover gives those 70-1/2 or older
the opportunity to help PPh by making tax-free charitable
gifts. Making gifts from IRA funds that would be subject
to tax if withdrawn voluntarily or under mandatory withdrawal
requirements may be wise for many this year and next.
For 2006 and 2007, Congress is allowing these individuals
with traditional or Roth IRAs to make tax-free gifts
directly to qualified charities. Donors may choose to
make charitable distributions in any amount up to $100,000
per year, if so desired. A couple with separate IRAs
could each give up to that amount.
Individuals who are required to take unneeded IRA withdrawals,
and others who have experienced limitations on tax benefits
in the past will find the new law of particular interest.
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Gifts of Cash
No matter what your income, if you itemize, you can
almost always lower your income taxes through charitable
giving. The amount of the income tax savings will depend
on your income tax bracket.
Gifts, no matter the size, are greatly appreciated.
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Gifts of Securities
If you own stock, it is a wise way to make a charitable
gift. You avoid paying any capital gains tax on the
increase in value of the stock. You also receive an
income tax charitable deduction for the full fair market
value of the stock at the time of the gift.
EXAMPLE: If you purchased some stock many years ago
for only $1,000 and that stock is now worth $10,000,
an outright gift of the stock to us would result in
a charitable contribution deduction of $10,000. In addition,
there is no capital gains tax on the $9,000 of appreciation.
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Gifts of Property
You can donate personal property like
artwork or equipment and secure a charitable income
tax deduction.
