Charitable IRA Rollovers
If you are a supporter of Joslin Diabetes Center, there is a unique opportunity to realize additional benefits within the context of your philanthropy. On August 17, 2006, the President signed the Pension Protection Act of 2006 into law. This law contains a significant set of charitable giving incentives, including a limited-time provision permitting tax-free distributions from IRAs, also known as charitable IRA rollovers. Between now and December 31, 2007, you have an unprecedented opportunity to help us. Here's how:
- Charitably minded individuals, aged 70 ½ and older, may transfer up to $100,000 per year directly from a traditional or Roth individual retirement account (IRA) to charity and exclude the amounts from their gross income
- The charitable distribution satisfies the minimum distribution requirements in the year of the gift
- Charitable distributions may be made in addition to any other charitable giving you may have planned
- Because the distribution generates neither taxable income nor a tax deduction, even non-itemizers can benefit
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It is important to note that distributions must be outright gifts, must be made to qualified charities, like Joslin, may not be used to fund charitable remainder trusts or charitable gift annuities, and even though these distributions will have a net zero effect on federal taxes, state tax laws may vary.
If you would like more information, or to have a confidential discussion about your options under this unique provision, please call or email Pamela Moodie at (617) 735-1990. We encourage you to consider how this new law may be of benefit to you, your family and the charities you support. As always, we recommend you consult a tax professional if you are contemplating a gift under this new law.
Thank you for exploring how to help people live well with diabetes, and to finding a cure.
Frequently Asked Questions about Charitable IRA Rollovers
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