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If you are 70 ½ or older, recent legislation benefits YOU! Congress recently acted to extend the provisions of the Pension Protection Act of 2006 to extend its reach to charitable gifts made in 2008 and 2009 retroactive to January 1, 2008.
The original legislation allows you to make a gift to a qualified charitable organization, such as Cunningham Children’s Home, using funds transferred directly from your individual retirement account --- without paying taxes on your distributions.
Your gift can be accomplished simply and it maximizes the benefit of your IRA dollars. By utilizing this type of giving, the potential to make a dramatic, positive change in youth at Cunningham can become well within your reach.
Here are Several Benefits of the Pension Protection Act:
- The gift amount helps fulfill the donor’s minimum withdrawal for the year.
- The transfer generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.
- You may transfer up to $100,000 per year.
- Traditional IRA and Roth IRA are included. Not included are plans such as 401(k) and 403(b), defined benefit plans, profit sharing and a few others.
- The gift must be made directly from the IRA to the charity. If you withdraw the gift and then make the gift from your checking account, the amount withdrawn would be taxed.
Because these gifts must be made directly from your IRA to Cunningham Children’s Home, please make sure that you notify us of the gift so we can give proper credit and acknowledgment.
Consult your financial advisor to see if your plan is eligible for this kind of a gift. For more information about how your gift may be best used to meet needs of youth at Cunningham Children’s Home, please contact Cloydia Hill Larimore by email or at (217) 367-3728.
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