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IRA Rollover
Great News—IRA Rollover Provision Extended
Why Bruce Garvin is taking advantage of the IRA charitable rollover provision...
Former IHM board member Bruce Garvin knows when to take advantage of a good thing. Last year Garvin, a retired CFO from Sterilite Corporation, provided additional support to IHM’s Annual Fund by making a charitable contribution through his IRA. Under an IRA charitable rollover provision permitting people aged 70 ½ or older to contribute up to $100,000 from their IRAs tax-free. Garvin was able to augment his support of IHM’s Annual Fund without affecting his tax status.
“An IRA is a great retirement vehicle,” said Garvin, “but only if it is used during your lifetime. Your estate will be hit hard with taxes after your death. So I decided to tap these funds to make my Annual Fund contribution to Indian Hill. It is a win-win situation.”
With the recent signing of the federal government’s $700 billion economic bailout plan,
this rollover provision has been reinstated and will be made
retroactive through January 1, 2008, with a closing date of December 31, 2009.
If you have either a traditional or Roth IRA, and you are at least 70 ½ years of age, you may make a gift to Indian Hill Music using your IRA assets. This is a great way to make your annual fund gift without having an impact on your cash flow. The distribution is tax-free and counts toward your mandatory IRA withdrawal amount. Don’t miss this great opportunity—call us now to make your gift.
The IRA Rollover provision of the Pension Protection Act of 2006 has been extended through 2009.
What this means for you:
If you are have either a traditional or a Roth IRA and you are at least 70.5 years of age, you may make a gift to Indian Hill Music using your IRA assets.
You must instruct the trustee to distribute the funds
directly to a public charity, such as Indian Hill Music.
Potential benefits:
• Distribution will count toward your mandatory IRA withdrawal amount.
• You may give up to $100,000 without the distribution being included in taxable income.
• You can make a gift to Indian Hill Music’s Annual Fund without affecting your cash flow.
Please review these rules to make sure your gift will qualify:
• You must be 70.5 years of age or older at the time of the gift.
• Your IRA rollover gift must be made to a qualified charity.
• The transfer must go directly from your IRA to a qualified charity and cannot fund life income arrangements such as gift annuities or trusts.
• Your IRA rollover gifts cannot exceed $100,000 per tax year.
• The amount rolled over from your IRA will be excluded from your gross income.
• Your IRA rollover will count toward your minimum distribution requirement.
• There is no federal income tax deduction for the IRA rollover gift.
• The IRA rollover provision is effective retroactively to January 1, 2008 through December 31, 2009.
Gifts from retirement accounts other than IRAs—such as 401k, 403b, and SEP accounts—are not eligible. Donors may be able to make qualified transfers of money from other accounts to their IRA and then make a charitable gift from their IRA. Please check with your tax advisor.
To take advantage of this opportunity to contribute to Indian Hill Music with a gift from your IRA, please call your IRA plan administrator to arrange for a direct transfer. Donors who transfer funds from their IRA should notify the IHM’s Development Office of their transfer, since the transfers are anonymous and IHM will have no way of identifying the gift without this information.
Indian Hill Music will provide appropriate documentation concerning its status as a qualified charity and acknowledgement of your gift. Keep in mind that transfers fro the 2008 tax year must be completed by December 31, 2008.
For more information or assistance, please contact your financial advisor or
Susan Randazzo, Executive Director, (978) 486-9524 x110.
