IRA Rollover Provision
Gifts to Foundation for Blind Children from Your IRA
Here’s great news for Foundation for Blind Children supporters considering contributions to FBC. President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which provides a two-year retroactive extension of the IRA Charitable Rollover. Specifically, the new law reinstates the Rollover for 2010. The new expiration date for the Charitable Rollover is December 31, 2011.
Facts about the IRA Rollover Provision:
* The IRA charitable rollover permits you to make donations directly to charitable organizations like Foundation for Blind Children from your IRA without counting the donations as part of your adjusted gross income and, consequently, without paying taxes on them.
* Contributions made by December 31, 2011 are eligible for the enhanced tax benefit.
* Donors must be 70 1/2 years old or older when the donations are made.
* A donor’s total combined charitable IRA rollover contributions cannot exceed $100,000 in any one year.
* Charitable contributions from an IRA must go directly to public charities like Foundation for Blind Children.
* Donations can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment.
* Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment.
* To benefit from the tax-free treatment, donors must obtain written substantiation of each IRA rollover contribution from each recipient charity. See sample letter below.
* Distributions must be made directly from the IRA trustee payable to the public charity.
Contact your IRA custodian to make a gift from your IRA. For more information, please call Marc Ashton, Chief Executive Officer, at (602) 678-5801 or email mashton@seeitourway.org.
Click on the sample letter below to begin this process.
