Support UCS with an IRA Rollover Gift
The popular charitable IRA rollover is back for 2011!
There's good news for individuals aged 70 1/2 or older with individual retirement accounts (IRAs). Thanks to the Tax Relief Act of 2010, you can once again make tax-free charitable gifts using funds from your IRA.
As you may know, retirement plan assets are typically subject to a heavy tax burden. If you are age 70 1/2 or older, required to take minimum distributions from your IRA, and you do not need the money for personal use, consider using these funds to make a charitable gift to UCS. While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount.
Here's how to take full advantage of this special giving opportunity:
To Qualify:
- You must be 70 1/2 or older at the time of the gift.
- Qualified distributions must be made by Dec. 31, 2011.
- Gifted funds must be transferred DIRECTLY from a traditional or Roth IRA account to the charity by your IRA administrator. Funds that are withdrawn by you and then contributed do NOT qualify.
- Gifts from 401k, 403b, SEP and other retirement plans do not qualify.
- Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.
The Benefits:
- You may transfer up to $100,000 of gifts directly from your IRA in 2011.
- In most cases, qualified charitable distributions count toward your minimum required distributions.
- The charitable distribution generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.
- Gifts from your IRA may be in addition to or fulfill any charitable giving you have already planned.
The Next Step:
Be sure to contact tax professionals and your IRA administrator if you are considering a gift under this law. Feel free to contact Adam Kessler at 800-666-8276 x8040 or akessler@ucsusa.org with any questions.
