President Bush has signed into law legislation that allows individuals 70½ and older who have Individual Retirement Accounts (IRAs) to make direct and tax-free transfers from their IRAs to their alma mater (and other public charities). This opportunity was possible for the past two years, but it expired last December. Now, donors will be able to do so again this year. The key thing is that the charitable gift transfer must be completed by December 31, 2008.
We know from last year’s experience that many Americans who are 70½ and older will see this new law as a creative way to support their alma mater (and other public charities). The IRA-funded gifts can be for any amount up to $100,000. This means a donor may give not only the amount that must be withdrawn this year to meet mandatory distribution requirements but also can draw down part of the IRA's principal – which has the added advantage of reducing the tax bill due on next year's withdrawal.
These IRA gifts are relatively easy to do, but they take a little time to process. Those interested in taking advantage of this special opportunity are encouraged to act soon, to be sure they meet the December 31 deadline. My office is available to answer any questions donors may have about what they need to do to make a ‘qualified charitable distribution,’ as these IRA gifts are called by the U.S. IRS.”
For more information on making a 'qualified charitable distribution' this fall from an Individual Retirement Account (IRA), I can be reached at either 540.568.3196 or (toll-free) 800.296.6162. By e-mail, please use sudoltj@jmu.edu.
And, to read more about making gifts from your IRA (and other such ideas), you are invited to visit the web at www.jmu.edu/development/plannedgiving.
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