A Charitable Contribution to the
WSS from my IRA? Tell
me more…..
If you are over 70 ½ and have an IRA
you could consider a direct transfer (rollover) from your IRA to the
WSS. The Pension
Protection Act of 2006 allows gifts to charity directly from an IRA
with some restrictions; however, this opportunity will end in full
on December 31, 2007.
For an individual who is over 70 ½ the
amount of the rollover contribution is not subject to income tax and
likewise there is no charitable deduction. The rollover does, however,
count toward fulfilling your required minimum distribution. To qualify the payment must
pass directly from the IRA to a public charity although you, as the
IRA owner, can deliver the payment.
Who might benefit from this type of
contribution?
- An Indiana taxpayer may benefit because
Indiana does not allow for
itemized deductions.
Transferring the money directly from the IRA lessens
reportable income because the amount has been rolled to the
charity, therefore lowering your gross income.
- Taxpayers who do not itemize
deductions may benefit by not recognizing the IRA income.
- Social Security recipients may
benefit by reducing the income that determines the portion of
taxable Social Security receipts.
The amount eligible for this
provision is limited to $100,000 per IRA owner/beneficiary.
As always, we recommend you speak to
your tax advisor as to how this can benefit you.
Remember, December 31,
2007 is the deadline.
You may contact John
Becker, Director of
Development, for any questions regarding Charitable Bequests, IRA,
Stock Donations or Large
Grants. | 
