TAKE ADVANTAGE OF THE IRA CHARITABLE ROLLOVER FOR 2009
Last year at this time, contributing author Lawrence Pon, CPA/PFS, CFP, of Pon & Associates described how the IRA charitable rollover provision could be used by some clients for maximum tax and charitable benefit (November 2008 eNews). The Pension Protection Act of 2006 (H.R. 4) provisionally allowed people aged 70½ to exclude from their income up to $100,000 per year in retirement plan assets if it was contributed directly to a qualifying charity. This provision was extended in 2008 by H.R.1424 for rollovers through the end of 2009. By giving directly to charity, the money is not subject to income tax, thereby preserving the full amount for charitable purposes. While required distributions were suspended for 2009 as part of the Worker, Retiree, and Employer Recovery Act of 2008, the provision remains an exciting charitable resource for community members.
The IRA Charitable Rollover remains ideal for:
- Clients limited by their charitable deduction limits
- Clients who claim standard deductions but wish to remain charitable
- Clients who wish to reduce their taxable estate
IRA donors have multiple options to make a difference. As a qualified public charity, Silicon Valley Community Foundation suggests three options for clients looking to take advantage of the IRA charitable provision:
The future is unclear for the IRA charitable rollover beyond 2009. Help your clients take advantage of the provision now while it remains a charitable, tax and estate leveraging tool by contacting Silicon Valley Community Foundation at donate@siliconvalleycf.org or call 650.450.5517.
