IRA Charitable Rollover

In the new tax bill just signed, the IRA Charitable Rollover provision has been extended through 2011.  Persons can even retroactivly make 2010 contributions as late as January 2011!!  Given the short window of opportunity to take advantage of this incentive for 2010, we encourage you to contact your IRA administrator immediately. 

What is the IRA Charitable Rollover? 
The IRA Charitable Rollover was first enacted by Congress in the Pension Protection Act of 2006.  The giving incentive expired in 2009, but has recently been reinstated through 2011 as part of the Tax Relief , Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  This is good news for individuals age 70½ or older as it allows persons to make charitable gifts directly from their IRA without tax complications.  If you are required to receive minimum distributions from your IRA and you do not need the money for personal use, consider using those funds as a charitable gift to the Church.  While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount. 

You may contribute funds this way if:

  • You are 70½ or older
  • Your IRA gifts total $100,000 or less each year
  • You transfer the funds directly from an IRA
  • You transfer the gifts outright to the Church or other qualifying charity

 

The Benefits

  • In most cases the gift counts toward your required minimum distributions.
  • The gift generates neither taxable income nor a tax deduction, so even those who do not itemize on their tax return receive the benefit.
  • You may transfer up to $100,000 directly from your IRA.
  • The distributions may fulfill your operating budget pledge, building pledge or other giving you already had planned.

 

If you are interested

If you are interested in this giving option, please contact your tax professional and/or your IRA administrator.  In addition, you will need to let the Business Office at the Church know you are making this gift.  Since the check from your broker will be made payable to First United Methodist Church Richardson and mailed directly to our location, occasionally your broker will fail to put your name on the check.  This makes it difficult for the Church to track down who the gift is from in order to give you contribution credit.  When you notify your broker to initiate the transaction, please also notify Dianne Weideman, Director of Finance at dweideman@fumcr.com or 972.996.0106 that the gift is coming and to let us know where you would like the gift designated.