Congress extends IRA Charitable Rollover through 2009

On October 3rd, Congress passed and the President signed H.R. 1424, the Emergency Economic Stabilization Act of 2008, AKA “the bailout,” authorizing the use of $700 billion in tax dollars to stabilize the nation’s financial markets. Included in this landmark bill was a two-year extension of the IRA charitable rollover opportunity, which previously lapsed at the end of 2007.

The IRA Charitable Rollover allows an IRA owner of age 70 1/2 or older to make a charitable gift (or gifts) of up to $100,000 per individual directly from an Individual Retirement Account to a nonprofit of choice. By doing so, the donor can make a very meaningful gift and avoid the income tax liability incurred in satisfying the annual required minimum distribution (RMD). For certain donors, such gifts also would reduce estate taxes, which are especially onerous on traditional IRAs. The new provision expires December 31, 2009.

If you are a donor qualifying to make tax-free gifts from an IRA to charitable causes, the Foundation invites you to consider Permian Basin Area Foundation. As a community foundation that understands the ever-changing needs of organizations in this region, our Foundation is uniquely positioned to assist you in directing gifts to specific causes that support your charitable goals today – and for years to come.

To further explore this time-sensitive gifting opportunity with respect to your specific circumstances, please consult your tax advisor. For assistance in facilitating an IRA rollover gift, contact Guy McCrary at 432.617.3213 or gmccrary@pbaf.org.

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