The IRA Chartable Rollover Act extended for 2009

Nearly half your retirement plan assets can be eaten away by taxes at your death. You may wish to take advantage of Federal tax law that make gifts of retirement plan assets easier and simpler. The Pension Protection Act of 2006, recently extended through 2009, allows for IRA charitable rollovers in amounts up to $100,000 to charities tax-free.

If you are age 70 ½ or older, the legislation allows you to make cash gifts totaling up to $100,000 a year from your traditional or Roth IRA to Human Life International without incurring income tax on the withdrawal.

This provision is effective until December 31, 2009, so you must act quickly to take full advantage. This legislation is good news for people who want to make a charitable gift from their retirement assets, but have been discouraged from doing so because of the income tax penalty.

How do you get started?

Write a letter to your IRA administrator requesting a distribution to be sent directly to Human Life International.  Sample letter to notify your IRA administrator [IRA request distribution.pdf 172 kb].

Write a letter directed to the Development Office of Human Life International to inform us that the gift is in process and to look for the distribution from your IRA Administrator.  Sample letter to notify Human Life International [IRA inform HLI of distribution.pdf 203 kb].

Why make a gift to HLI from your IRA?

At 70 ½, you must begin receiving the Required Minimum Distributions from your IRA regardless of whether you actually need the income. Contributing your distribution to HLI can cover or count toward your Required Minimum Distribution and help us save babies and fight the culture of death around the globe.

How will the charitable IRA rollover be reported on your 2009 income tax returns? The Pension Protection Act provides that a person over the age of 70 ½ can donate up to $100,000 from an IRA and can exclude the gift from taxable income. There is no charitable income tax deduction for the gift. The tax benefit is the ability to exclude the distribution from your gross income.

As always, it is advisable to contact your personal tax advisor.
If you have any questions, please contact Bill Williams at 540-622-5285.