IRA Charitable Rollover Law Expires December 2009

Torchlight  |  Summer 2009

Federal Legislation allows tax-free rollover gifts to charity

Until December 31, 2009, anyone age 70½ and older can make tax-free charitable gifts totaling up to $100,000 per year from their IRAs directly to eligible charities. These gifts result in significant tax savings and there is no IRA withdrawal tax. But this law expires at the end of 2009. Until then, you can directly rollover your funds—tax free—as a gift to the NACS Foundation. Simply contact your trustee or custodian for the applicable rollover forms.

The NACS Foundation is encouraging eligible owners to act soon if interested in arranging a gift. The rules are very simple:

• Donors must be age 70½ or older when the gift occurs and own a traditional IRA.
• While no charitable deductions are allowed, transfers to NACS Foundation count toward the owner's required annual distribution and therefore can reduce taxable income. IRA gifts will not impair deductibility of regular charitable contributions.
• Only the IRA custodian can transfer gift amounts to a qualified organization. If an owner withdraws funds and then contributes them to NACS Foundation separately, amounts withdrawn will be included in the donor's gross income.

If you would like additional information about IRAs and ways to support NACS Foundation's work, please contact Foundation Executive Director DeAnn Hazey at 800-622-7498, ext. 2286. Always be sure to check further with your tax advisor.