Tax-Free IRA Charitable Rollovers
On December 17, 2010, President Obama signed into law the The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This bill has restored the IRA Charitable Rollover through the end of 2011.This legislation allows donors over age 70-1/2 to exclude from adjusted gross income gifts directed from traditional and Roth IRA accounts, up to $100,000 each year through 2011.
Because of the bill's late enactment, Congress is allowing individuals who choose to make a qualified charitable distribution rollover to make their 2010 charitable gift during 2010 or in January 2011.
The income exclusion is for federal income tax purposes. The distribution amount may still be included for state income tax purposes. This varies from state to state. The exclusion applies to direct gifts to charities but not to split interest gifts such as donor-advised funds, charitable gift annuities, or charitable remainder trusts.
To take advantage of gift opportunities from IRA accounts for 2010 or 2011, please talk to your financial adviser or IRA program administrator.
For more information, contact our Donor Relations Specialist at 877-366-7242, x1106.
Please note: This information is not legal, tax, estate planning or financial advice and is designed to be for general information only. Legal, tax, estate planning or financial planning advice should only be obtained from a planning professional.
