The Charitable IRA Rollover is Back Through December 31, 2011
The Charitable IRA Rollover is a gift plan that enables individuals to make tax-free transfers from IRA and Roth accounts directly to The James Dick Foundation for the Performing Arts. This charitable option had expired under past legislation, but has been reinstated through the passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (Act). Under the Act, Charitable IRA Rollovers are available through December 31, 2011. The key points of this new law are the following:
- You must be age 70 1/2 and older on the date your contribution is made to the Foundation
- Transfers must be made directly from your IRA plan administrator to the Foundation
- You may give up to $100,000 per calendar year
- Transfers from IRA accounts between now through December 31, 2011 are eligible to be counted against the 2011 tax year
- You must own a traditional IRA or Roth IRA; transfers from qualified retirement plans such as 401(k)s, 403(b)s, SIMPLE-IRAs will not qualify
In addition, your contribution to the Foundation can satisfy your qualified minimum distributions.
Please note that because no tax is paid, a charitable tax deduction is not available. In addition, State tax may still apply as a result of the distribution to charity, so please consult with your attorney or tax advisor before making any distribution from your IRA to learn how this Act impacts your specific situation. Download a sample written request to send to your IRA plan administrator to make a direct transfer from your IRA to The James Dick Foundation for the Performing Arts.
More information
Lamar Lentz, Associate Managing Director • PO Box 89 • Round Top, TX 78954-0089
Direct: (979) 249-3129 (Ext. 20) • Fax: (979) 249-5078 • lamarl@festivalhill.org.
