IRA Rollover Provision Reinstated !

Once again, the IRA charitable rollover provision has been extended.

A fabulous tax saving opportunity is available to you. If you are 70½ or older (or know someone who is) the new IRA Rollover Provision permits you to make a contribution of up to $100,000 to the Jewish Federation.

This provision avoids the normal income tax on such distributions. Amounts paid directly to a qualifying charity* from a donor’s IRA may be counted toward the donor’s minimum distribution requirement from the donor’s IRA.  The charitable contribution is tax-neutral -- it will not be included in the taxpayer’s income and it will not be deductible.

The IRS forces the annual distribution (and payment of ordinary income tax!) of up to 5% of your IRA balance.  If you have up to $2,000,000 in your plan, you will pay tax on an additional $100,000 this year. 
 
To avoid this fate, you can donate your mandatory IRA distribution to the Jewish Federation!  It’s a win-win – at 46% tax (State plus Federal) you will have a positive impact for yourself and the Jewish Federation.

The IRA Rollover Provision is an ideal charitable opportunity if, for example:

• You don’t need the extra (taxable) income from the minimum distribution;
• You take the maximum charitable deduction (50% of AGI) in any year; and/or,
• You’re subject to the 2% rule (itemized deductions are reduced by 2% of AGI in excess of $150,500 this year).

Don’t delay, talk with your financial advisor about this incredible opportunity.

*Rollover gifts may not be used to establish gift annuities or charitable remainder trusts or be contributed to donor advised funds, supporting foundations or private foundations.