IRA Charitable Rollover Gifts

IRA Charitable Rollover was Reinstated for 2010-2011

The IRA Charitable Rollover and other critical giving incentives were reinstated through 2011 as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

The IRA Rollover was first enacted in 2006 as part of the Pension Protection Act. Donors age 70 ½ or older are able to contribute up to $100,000 annually from an IRA account and avoid federal tax consequences. When the amount withdrawn from the IRA account is paid directly to the charity, it is not counted as federally taxable income. In addition, the IRA charitable gift amount counts against the donor’s required minimum distribution (RMD). However, the gift may not be counted as a charitable deduction on federal tax returns. These rules apply to gifts made through December 31, 2011.

To take advantage of the IRA transfer provision it was necessary to meet all of the following requirements:

• You are at least 70 1/2 years old at the time the gift is made.
• The gift is paid directly from the IRA account to the charity.
• The total transferred to all charities under this provision is no more than $100,000 in 2011, and
• The gift is completed by December 31, 2011.

For more information about how to help Tau Beta Pi, please call Pat McDaniel, Director of Development, at 865/546-4578.

You should always consult your own professional tax counsel on these matters, as with all legal and tax matters, since Tau Beta Pi cannot act as your advisor. There are several exciting opportunities for gifts provided by this new law; however, since we are prohibited from offering advice, this information should not be construed as tax or legal advice.