IRA Charitable Rollover Option Extended

The Emergency Economic Stabilization Act of 2008 included a special opportunity to make gifts directly from an IRA to InterVarsity. This is the same opportunity that was available during 2006 and 2007, and it was extended by last year’s legislation – but only through the end of 2009.

You can make distributions directly to one or more charities from a traditional or Roth IRA that you own or of which you are a beneficiary, as long as you are at least 70 ½ years old when you transfer the gifts. Such gifts can be made without increasing your taxable income or withholding.

Additionally, funds transferred from your IRA to a charity will NOT subject your Social Security income to higher tax levels.

Example: Jack has $500,000 in an IRA and would like to contribute $25,000 to InterVarsity in 2009. Jack decides to authorize the custodian of the IRA to transfer this amount directly to the organization. He will not be subject to tax on the $25,000 distributed to InterVarsity. (But neither will Jack deduct this amount because he won’t include it in his taxable income in the first place.)

Giving from an IRA rather than other assets may be especially appropriate if:

• you use the standard deduction, OR
• you plan to leave money to charity from you IRA at death anyway, OR
• you would not be able to deduct all of your charitable contributions because of deduction limitations, OR
• you may lose some of your itemized deductions because of your income level.

Certain limitations apply to these non-taxable charitable distributions from an IRA:

• The gifts can only be made during 2009 (unless Congress extends the legislation).
• You must be at least 70 ½ years of age when the gift is transferred.
• Total gifts cannot exceed $100,000 per year, per IRA owner or beneficiary. (Husband and wife with separate IRAs could give up to $200,000 per year.)
• Gifts must be made directly from your IRA to a public charity – they cannot be made to a private foundation, a supporting organization or a donor advised fund.
• The gifts must be outright. For instance, they cannot be used to establish a charitable gift annuity or fund a charitable remainder trust.

Sample letters to help you make your gift in a more efficient manner may be downloaded as editable Microsoft Word documents from our website. (Please call Gary Kopan, 1-866-734-4823, ext. 3685, if you need help downloading these documents).

If you would like more information about this or other ways to make a charitable gift from an IRA, please contact Gary Kopan. You can call toll-free: 1-866-734-4823, ext. 3685, or write to Gift Planning, InterVarsity Christian Fellowship, P.O. Box 7895, Madison, WI 53707-7895