IRA Charitable Rollover for 2010 and 2011

    Congress has approved a broad tax package that includes reinstatement of the IRA Charitable Rollover giving incentive.  The IRA Rollover allows donors 70 ½ and older to make up to $100,000 in charitable contributions directly from their individual retirement accounts (IRA), without paying federal taxes on the withdrawal. This incentive is retroactively reinstated for gifts made during 2010, and extended throughout 2011. Gifts made by January 31, 2011 may be recognized as 2010 gifts for tax purposes.

    Please note, though, that such direct gifts can not be claimed on your income tax return as a charitable donation. Nonetheless, this may be a good tax strategy for those taxpayers who must take required minimum distributions but don’t wish to increase their income with the distribution. Again, they won't have to pay taxes on the IRA distributions that are directly donated to a charity.

      The IRA donation rollover also might be a good strategy for individuals who face donation limits based on their income. Generally, you cannot donate an amount that exceeds 50 percent of your adjusted gross income. But when the money goes directly to the charity from the donor’s IRA, it doesn't count against that limit because it's not included in the filer's gross income computation.

    As always, one should consult their tax advisor about any tax planning strategies.

IRA Charitable Rollover - Highlights

* Permits donors age 70 ½ and older to make tax-free charitable gifts directly from their IRAs
* Caps qualifying gifts to an annual ceiling of $100,000
* For 2010 tax purposes, applies to gifts made January 1, 2010 through January 31, 2011
* For 2011, this incentive expires December 31, 2011
* The donation must be made directly to the charity. Please consult your IRA administrator to obtain the appropriate forms for this transaction.
* The donor will be required to provide the Federal Tax Identification number for the charity.  Desert Cancer Foundation’s Tax ID number is 33-0648823.

Please call Desert Cancer Foundation at 760-773-6554 if you would like more information on giving from your IRA.