The solid foundation I received at UW has opened many doors for me. I think it is important to give while you are 'alive and taking nourishment,' and it will be such a joy to see the new building on its completion.
- Mary Behrens ('64 BS Nursing)
Opportunity Alert Through 2007: Charitable Gifts from IRAs
The Pension Protection Act of 2006 provides charitably minded individuals aged 70½ or older a golden opportunity to make gifts to charitable organizations directly from their IRAs. This opportunity is available for 2006 and 2007 on the following terms:
Transfers must be directly from the IRA to a charity
Maximum allowable transfer is $100,000 per year
Gifts must be outright*
No charitable deduction is allowed
*Transfers to donor advised funds, supporting organizations, and charitable remainder trusts and for charitable gift annuities do not qualify.
Who Will Benefit?
Individuals who are required to take minimum withdrawals but don't need additional income can satisfy the distribution requirement with a transfer to charity.
Individuals who usually give up to 50% of their adjusted gross income—the ceiling on the allowable charitable deduction for any year—can now give up to $100,000 more from their IRA accounts that is not subject to this limitation or taxed as a distribution. This could enable you to avoid up to $35,000 ($100,000 x 35%) in federal income tax on IRA distributions each year.
Individuals whose major assets reside in their IRAs will find it convenient for this and next year to make direct transfers to charity from their IRAs without the hassle of having to report the transfer on their income-tax returns.
The new act presents a wonderful opportunity until the end of 2007 for individuals to utilize their IRAs creatively to accomplish special philanthropic objectives. Please let us know if you have questions or if we can assist you in any way.
