Campaign 2011
Campaign Progress
Goal = $855,000
Home 
Stewardship Capital Campaign 2011 2011 IRA Charitable Rollover ends 12/31/2011
Stewardship Capital Campaign 2011 2011 IRA Charitable Rollover ends 12/31/2011
| 2011 IRA Charitable Rollover ends 12/31/2011 |
 |
 |
 |
|
If you are over 70 and half years of age, this fall also provides another remarkable opportunity, if you have IRA assets and especially if you have required distributions. Read on! The compromise tax bill (“Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010”) extends until December 31, 2011, a provision known as the “Charitable IRA Rollover” which allows taxpayers age 70½ or older to make tax-free transfers (of up to $100,000 per year) directly from their IRA to charities. The law, originally enacted in 2006, expired at the end of 2009, but has now been renewed for an additional two years, through December 31, 2011. If you would like to make a special contribution to our capital campaign through your IRA, please contact Bill Kimball through our church office or your own financial advisor. You can make distributions directly to one or more charities from your traditional or Roth IRA, as long as you are at least 70 ½ years old when you transfer the gifts. Such gifts can be made without increasing your taxable income or withholding. Additionally, funds transferred from your IRA to a charity will NOT subject your Social Security income to higher tax levels, and will count toward your minimum required distribution (MRD). Example: Jack has $500,000 in an IRA and would like to contribute $25,000 to Chardon UMC in 2011. Upon hearing of the recently renewed Charitable IRA Rollover opportunity, Jack directs the custodian of his IRA to transfer this amount not later than December 31, 2011 directly to the church as his 2011 gift. He will not be subject to tax on the $25,000 distributed to the church. (But neither will Jack deduct this amount because he won’t include it in his taxable income in the first place.) If Jack withdrew the $25,000 from his IRA to give to the church, he would have had to pay ordinary income tax on his distribution. If he is in the 25% bracket, his tax would be $6,250, leaving him only $18,750 to donate to the church. If he donated that and took a tax deduction, his deduction at the 25% bracket would save him $4,687 in taxes, but he's already paid $6,250, meaning a direct transfer from his IRS allows him both a greater contribution to the church and less tax consequences. Here are a couple of resources to check http://financialducksinarow.com/3369/charitable-contributions-from-your-ira-in-2010-and-2011/ http://www.pppnet.org/government/rollover.html |