Tax Relief Act (Expires 12/31/11)

Did you know that Congress has re-authorized a provision so that you can make a tax-free gift from your IRA account and avoid federal income tax on the withdrawal?  You can, and if you want to take advantage of this, you must do so by December 31st, 2011.

If you would like to reduce estate taxes and this is something you’re interested in, here are a few points to take note of:

  • Must be at least 70 ½ years young
  • Maximum of charitable distributions from an IRA account is $100,000 per individual (this can be excluded from your gross income)
  • Gifts must be outright and made directly from your IRA account to a qualified charity of your choice (you cannot use this distribution to fund a planned gift, such as a Donor Advised Fund or a Charitable Trust)
  • Gifts will count as a required minimum distribution for your IRA
  • You will be unable to claim a charitable deduction on these gifts

Please share this information with those you think will be interested (philanthropic individuals, institutions, and advisors).  There are only a few months left for this opportunity and we’d like everyone that may potentially be interested to know about this option.

While this type of gift is pretty simple to make, always seek consultation from a professional to ensure that you and the charity are receiving the maximum benefits.

By: Kristen Schmidt, Marketing Coordinator

Back to the September 2011 eNewsletter