IRA Charitable Rollover – It’s back!
On December 17, 2010, President Barack Obama signed into law, H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This new tax bill provides a two-year retroactive extension of the IRA Charitable Rollover.
To take advantage of this opportunity for the 2010 tax year, you should act quickly. Any eligible gifts made by January 31, 2011 are allowed to be treated as a 2010 donation and can be used to satisfy the donor’s minimum distribution requirement for 2010.
The new expiration date for the IRA Charitable Rollover provision is December 31, 2011, which means that qualifying gifts made to eligible charities throughout 2011 will qualify for favorable tax treatment under the bill.
Qualifications include:
- Owners of traditional IRAs.
- Aged 70 1/2 or older.
- Transfer directly from the plan administrator to a qualified charity like WEDU.
- No more than $100,000 per year (with this new bill, a donor may transfer up to $100,000 by January 31, 2011 for the tax year 2010 and $100,000 by December 31 for tax year 2011).
Be sure you give your IRA custodian adequate lead time to complete the transfer.
If you’d prefer to simply name WEDU as a beneficiary of your retirement asset, click here for appropriate language.
As always, you should consult your attorney and tax advisors when considering such matters. This information is not intended as specific legal or tax advice.
For more information contact us at website@wedu.org
