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Take advantage of making a Charitable Gift through an IRA Charitable Rollover

The Pension Protect Act, passed by Congress in 2006, allows people 70½ and older to give to qualified charities directly from their IRAs. Gifts may be rolled over directly to charity without having to be reported as income and may count toward donors’ required minimum distribution. The law, however, is temporary and ends December 31, 2009. The Alive in Hope Foundation is encouraging people interested in giving through IRA rollovers to contact the foundation office so gifts can be completed by the December 31st deadline.

You can make a direct gift from your IRA to establish or enhance an endowment in the Alive in Hope Foundation. With over 90 endowments housed in the Foundation, many parishes and schools can directly benefit from your generosity. Giving through an IRA rollover provides more than just tax savings — it gives you the chance to give during your lifetime and see the impact of your generosity. This gift counts toward fulfilling your required minimum distribution.

In 2009 you can exclude up to $100,000 from your gross income for distributions made directly from your traditional IRA to a qualified charity. For married couples, each spouse can make a distribution from his or her IRA under the same provisions.

The distribution must be from your IRA, not a 401(k) or other retirement plan. However, consult with your financial or tax advisor about the possibility of transferring funds from one of these other plans to establish an IRA, with the distribution to charity coming from the newly established IRA.

For more information about how you can benefit from an IRA charitable rollover, contact the parish office or the Alive in Hope Foundation at 718.965.7375.

These helpful tips are only for your information on this change in the IRA law and are not to be considered as legal, tax or financial advice. You should consult with your legal, tax and financial advisors to implement the benefits of this new law and related matters. To learn more about Wills, Estate, and Financial Planning, please contact our offices to learn about upcoming free seminars in your area.

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The IRA distribution must be a direct charitable gift and not a distribution to a donor-advised fund, a charitable remainder trust or for a charitable gift annuity. To take advantage of the IRA charitable rollover to support a ministry of your choosing through Alive in Hope, please review the following helpful tips on how to handle your charitable gift correctly:

• Contact your IRA custodian or representative before making a gift to arrange for the proper transfer of funds from your IRA directly to the qualified charity. The check issued from the IRA must be made payable to the charity.

• If you have elected to have income tax withheld from your normal IRA distributions, advise your IRA administrator not to withhold taxes from distributions to charity.

• While this topic is fresh on your mind, ask your attorney and financial advisor how to make the Church a beneficiary of your will or trust or IRA.