Give a Gift of Retirement Assets to the Institute Tax Free
Tax Relief Job Creation Act Allows Qualified IRA Charitable Distribution
Deadline — Distribution must be made by January 31, 2011 to qualify for 2010 tax return
If you are 70½ or older, recent legislation allows you to make cash gifts totaling up to $100,000 from your traditional or Roth IRA to qualified charities without incurring income tax on the withdrawal.
This is good news for people who want to make a charitable gift during their lifetime from their retirement assets, but have been discouraged from doing so because of the income tax penalty. The current provision is effective for the 2010 and 2011 tax years only.
Charitable IRA Distribution Provision
On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which includes an extension of the IRA Qualified Charitable Distribution—a tax benefit that had expired at the end of 2009. The extension allows individuals 70½ and older to donate up to $100,000 from their IRAs tax free to qualified charitable organizations, such as The Jane Goodall Institute.
To qualify for 2010 tax returns, distributions must be made by January 31, 2011. Because Congress acted so late in 2010, individuals who choose to make a charitable distribution from their IRA to a charity and count it on their 2010 tax return have until January 31, 2011 to make their 2010 IRA Charitable Distribution. The provision permits distributions from traditional IRAs or Roth IRAs to qualified public charities, subject to certain restrictions.
Are you Eligible?Individuals who are age 70½ or older at the time of the distribution may qualify.
You can transfer up to $100,000 each year for 2010 and 2011, but, in order to have it count on your 2010 tax return, you must make the charitable distribution by January 31, 2011.
Distributions must be made from your IRA directly to the Jane Goodall Institute. If you have retirement assets in a 401(k), 403(b) etc., that you wish to donate, you must first roll those funds into an IRA, then you can instruct the IRA provider to transfer the funds from the IRA directly to the Jane Goodall Institute.
How will the Institute count the gift? Provided your distribution qualifies, the Institute will give you full credit for the entire gift amount.
Information regarding this tax law provision may be found at:
Please contact Carol Irwin, Director of Planned Giving, for further information
Tel: 703-682-9267 email:firstname.lastname@example.org
The information contained herein should not be used in any actual transaction without the advice and guidance of a professional Tax Advisor who is familiar with all the relevant facts. The information contained here is General in nature and is not intended as legal, tax or investment advice. Furthermore, the information contained herein may not be applicable to or suitable for the individuals' specific circumstances or needs and may require consideration of other matters. The Jane Goodall Institute assumes no obligation to inform any person of any changes in the tax law or other factors that could affect the information contained herein.