Save Taxes and Help End Hunger
IRA CHARITABLE ROLLOVER EXTENDED TO DECEMBER 31, 2009!
On October 3, 2008, Congress passed and the president signed into law the Emergency Economic Stabilization Act of 2008. Legislation that includes a two-year extension of the IRA charitable rollover (originally enacted as part of the Pension Protection Act of 2006 that had previously expired on December 31, 2007).
Taxpayers aged 70 ½ and older are required to take annual distributions from their Individual Retirement Accounts (IRAs). These distributions are included in the taxpayer's adjusted gross income (AGI) and taxpayers are required to pay taxes on them. If an IRA is part of an estate, the heirs may become liable for taxes on withdrawals.
The charitable rollover can be a creative and effective way to make a significant contribution to Bread for the World Institute – and support research and analysis that addresses the causes of hunger and poverty.
HOW IT WORKS
- The IRA charitable rollover allows philanthropic-minded taxpayers to make contributions directly to Bread for the World Institute (a 501(c)3) from their IRAs without counting the contribution as part of their AGI and therefore, not paying taxes.
- Contributions between January 1, 2008 and December 31, 2009 are eligible.
- Donors must be 70 ½ years or older when the distribution is made.
- The distribution must be made directly to Bread for the World Institute to be excluded. Qualified charitable distributions cannot be paid to individual account holders
- A donor's total combined charitable IRA rollover contributions cannot exceed $100,000 in any one year. Spouses, though, can each give up to $100,000; making a joint gift to one charity up to $200,000 in any one year.
WHAT TO DO
- Request your IRA plan administrator to transfer funds to Bread for the World Institute.
- The qualified charitable distribution is excluded from your adjusted gross income.
- Please let us know that you made such a transfer so we can watch for it on this end.
FOR MORE INFORMATION
Contact Reshena Johnson at Bread for the World to obtain a sample letter for your custodian, trustee or plan administrator. Call toll-free1-800-822-7323, ext. 138 or email rjohnson@bread.org.
PLEASE NOTE
Gifts of this kind can only be made to Bread for the World Institute. Bread for the World (a 501(c)4) lobbies the government on behalf of poor and hungry people and is ineligible to receive tax deductible gifts or transfer contributions from IRAs.
The information provided above is intended as an overview of the IRA charitable rollover and should not be construed as legal, accounting, financial, tax or other professional advice. Please consult with your appropriate advisor for implications specific to your circumstances.
