On Oct. 3, 2008, the government passed the economic rescue bill which included an extension of the Charitable IRA Rollover bill. This provision is retroactive to January 1st of 2008 and permits taxpayers age 70½ and older to make tax-free charitable gifts totaling up to $100,000 per year from traditional and Roth IRAs (Individual Retirement Accounts).
To qualify, distributions must be made directly from the IRA trustee, payable to the public charity. In most instances, your IRA administrator will send your charitable donation in the form of a check directly to the recipient charity and often will not include your name with the contribution unless you ask.
To make sure you receive the required tax letter from the charity acknowledging your gift, you should ask your IRA administrator to include your name and contact information with the contribution.
You should also inform the recipient charity of your donation and request a written acknowledgement. The acknowledgement letter you receive should include:
1. The amount of our gift
2. That the organization is a public charity qualified to receive donations from IRAs
3. That the gift will not be distributed to a donor-advised fund or supporting organization
4. That no goods or services were received by you in exchange for the contribution
This information is intended to provide general guidance and is not a substitute for professional counsel.
Consult your tax or legal advisor for professional guidance.
If you would like to discuss a donation to Silver Key Senior Services, please contact:
Paul Koch
Resource Development Director
719-884-2319
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