Blanco County News
Weather Fair 51.0°F (34%)
Congress Renews IRA Gift Opportunity
Wednesday, October 15, 2008 • Posted October 14, 2008

Congress has passed the Emergency Economic Stabilization Act of 2008, which extends for 2008 and 2009 an expired provision permitting IRA owners age 70 1/2 and older to make distributions to qualified organizations of up to $100,000 per year.

Sandy Goff, executive director of Hill Country Memorial Hospital Foundation and a certified fund raising executive, said no income tax deductions are available for IRA “qualified charitable distributions,” but donors may save taxes anyway where gifts take the place of required minimum distributions (which otherwise are 100 percent taxable).

“To make a 2008 gift from an IRA, donors should contact their IRA trustee or custodian as soon as possible, preferably before receiving any required minimum distributions,” Ms. Goff said. “Transfers for 2008 must be completed by Dec. 31 of this year, and distribution checks should be issued in the name of a qualified charity such as Hill Country Memorial Hospital Foundation, not to the account owner.”

Rules are the same as for IRA gifts made in 2006 and 2007, and include:

·Donors must be age 70 1/2 or older and own a traditional or Roth IRA. Other retirement plans such as pensions or 401(k) plans are not eligible.

·Only the IRA trustee can transfer gift amounts to a qualified organization. If IRA owners withdraw funds and then contribute them to charity separately, amounts withdrawn will be included in the donor’s gross income.

·IRA gifts may not exceed $100,000 and must be made before 2010. Up to $100,000 may be distributed for both 2008 and 2009.

For more information about these and other rules, call the HCMH Foundation at 830-997-1297 and ask for Ms. Goff.

This article has been read 70 times.
Comments
Readers are solely responsible for the content of the comments they post here. Comments do not necessarily reflect the opinion or approval of Blanco County News. Comments are moderated and will not appear immediately.
Comments powered by Disqus