Charitable giving easier
through your IRA account

Federal legislation is making it easier for you to make charitable donations to nonprofits, including the Senior Center, directly from your Individual Retirement Account (IRA) without having to pay income taxes on the money. On December 18, 2010, President Obama signed legislation reinstating your ability to make tax-free distributions from your IRA directly to eligible nonprofits. You must be age 70 ½ and donations count towards your minimal withdrawal. Such donations cannot be made to a private foundation or donor advised fund, but must be made to a charity such as the Senior Center.

Any eligible gifts made by Jan. 31, 2011 can be treated as a 2010 donation. The legislation also sets the new expiration date as Dec. 31, 2011, so that eligible gifts made throughout 2011 will qualify for favorable tax treatment.

The maximum annual charitable contribution from your IRA is $100,000 and there is no minimum amount. In the past, you would have had to take an IRA distribution, pay taxes on it, then make a gift to charity.

Contact your financial or tax advisor, or our executive director at 974-4577 for more information.