IRA Gift Opportunity

 

Contact Harold West at (919) 760-8372 or westh@meredith.edu

Congress has passed the Emergency Economic Stabilization Act of 2008, which extends for 2008 and 2009 an expired provision permitting IRA owners age 70½ and older to make distributions to qualified organizations of up to $100,000 per year.

The rules are the same as for IRA gifts made in 2006 and 2007:

  • You must be age 70½ or older and own a traditional or Roth IRA. Other retirement plans, such as pensions, 401(k) plans and others are not eligible.
  • Only the IRA trustee can transfer gift amounts to a qualified organization. If IRA owners withdraw funds and then contribute them to charity separately, amounts withdrawn will be included in your gross income.
  • No charitable deductions are allowed, but gift amounts will not be included in your income. IRA gifts may satisfy charitable pledges, according to the IRS.
  • IRA gifts may not exceed $100,000 and must be made before 2010. Note that up to $100,000 may be distributed for both 2008 and 2009. The “ceilings” on contribution deductions (50% of adjusted gross income for cash, 30% of AGI for capital gain assets), do not apply to IRA gifts.
  • IRA gifts cannot be made to charitable remainder trusts or other “life income gift” arrangements. Transfers are not permitted to donor advised funds or “supporting organizations.


For more information please contact Harold West at (919) 760-8372 or westh@meredith.edu.

Contact Information:

221 Johnson Hall
Phone: (919) 760-8374
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