January 21, 2011

It’s not often that Congress passes legislation that actually helps Heritage advance conservative principles, but that’s exactly what happened when last year’s IRA Charitable Rollover provision was extended. That’s the good news! The bad news is that the extension to deduct for your 2010 taxes will expire on January 31.

If you are 70 ½ and have an IRA you are required by law to make a minimum distribution each year. This distribution is considered income and is taxable. However, thanks to the IRA Charitable Rollover provision individuals are able to make distributions as high as $100,000 from their IRA to charity without incurring a tax on that distribution.

If you qualify for this opportunity and would like to support The Heritage Foundation please call our Heritage Legacy Society office at (800) 409-2003 if you have any questions. Generally, all that’s required is a call to your IRA custodian authorizing them to make a gift directly to Heritage. It would also be helpful if you notified Heritage of your intentions so that we can accurately credit the gift to you once it’s received.

Because the bill was enacted so late in the year, you have until January 31 to make a 2010 gift directly to The Heritage Foundation, but you have to act quickly to take advantage of this opportunity. Call our call our Gift Planning Office toll-free at (800) 409-2003 to learn more.

What you need to know

• The law is applicable in 2010 and 2011. You may make a maximum gift from your IRA of $100,000.
• Your gift must be made directly from your IRA to Heritage in order to qualify. Contact your IRA custodian about how to make a transfer.
• You will not receive a charitable income tax deduction for this type of gift. However, because these gifts do not fall under normal deduction rules, it means you can make gifts in excess of the 50 percent of Adjusted Gross Income ceiling for cash gifts.
• Gifts must be made before January 31, 2011 to qualify toward the 2010 taxable year. Donors should contact their IRA custodians directly about making a transfer, and extra time should be allowed to process the request by January 31.
• Keep in mind that everyone’s circumstances are different, and state as well as federal income, gift, and estate tax laws may affect your plans. Check with a qualified tax advisor to learn about your IRA charitable rollover tax benefits.

Comments (1)

Jersey Joe - January 22, 2011

Per the Economist’s point about The Heritage Foundation’s “shrewd marketing”,
The Heritage Foundation should include things like lifetime membership for certain levels of donation under this IRA Rollover process.

Just a thought.

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