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IRA Charitable Rollover

Posted November 7th, 2008 by frajotte

You have an opportunity to use personal funds from your Individual Retirement Account to make gifts to Visitation Hospital Foundation.  Until the Pension Protection Act was passed in 2006, all IRA withdrawals were subject to income tax.  Generally, we did not recommend tapping an IRA to make charitable gifts.
Now, a taxpayer who is at least age 70 1/2 can directly transfer ("rollover") up to $100,000 per year from either a traditional IRA or Roth IRA to Visitation Hospital Foundation without paying tax on the transferred gift amount.  Details about the new law include:

  • * The donor has to be at least 70 1/2
  • * The maximum distribution is $100,000 per year.
  • * The gift must be made directly from the IRA to 
  •    Visitation Hospital Foundation.
  • * The law is effective only for years 2008-2009.
  • * The distributed amount is excluded from income;
  •     therefore, no charitable deduction is claimed.
  • * The rollover satisfies your required minimum
  •    distribution.

The proces is easy, requiring just a simple letter to your IRA plan administrator.  If you would like a draft copy of a letter that you can send to your Financial Advisor or Plan Administrator, we would be happy to email or fax a copy to you.
Contact us at VisitationHF@aol.com or call us at 615/385-2363.