IRA Holders - Only 2 Months Left to Avoid Taxes on Your Distribution!
If you are currently over 70 ˝ and have an IRA or Roth IRA, you have only two months left to take advantage of one of the most significant pieces of charitable giving legislation passed in the last few years. It’s called PPA 2006.
The law allows someone meeting the age requirements mentioned above to have their IRA plan administrator transfer up to $100,000 ($200,000 for couples who both have IRAs) to eligible non-profits – like Breathe California – directly from their account without incurring any taxes. Previously, these transfers were taxed as income and then could be deducted like all other charitable donations. This could force someone into a higher tax bracket. So, although the transfers are now ineligible for a tax deduction, they can not push an individual into a higher tax bracket.
The greater advantage, however, is that the transfer will count towards the plan holder’s minimum required distribution. As a result, there will be no tax on the amount distributed to the charity. Without this legislation, the plan holder would have had to pay tax on the distribution, even if it wasn’t needed to meet living expenses.
These distributions cannot be made to supporting organizations or donor advised funds. They also cannot be used to fund split interest gifts where a life interest is helped by the donor or another private party.
Please contact Steve French at 408-998-5865 for more details and consult with your own tax advisor prior to making this type of gift.
Media Contact: Dave Low
(408) 998-5865, david@lungsrus.org