IRA Rollover
Provision Extended...
Recently extended by law for 2010 and 2011, the IRA Rollover
provision exempts from taxable income any funds transferred (“rolled
over”) from an Individual Retirement Account (IRA) to a charitable
organization. The following limitations apply:
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Sheet...
- The donor must be age 70½ or older.
- The cap on annual IRA rollovers is $100,000.
- A special provision allows interested donors to make
distributions that will be treated as made in 2011 if completed by
January 31, 2012.
- The contribution must be a direct gift to a charity (no
planned gifts).
Why should donors want to give some of
their IRA assets to a charity?
Many individuals have more than sufficient funds to retire
comfortably. In addition, individuals are encouraged under the current
tax laws to liquidate their IRAs during their lifetime since their
estates may face confiscatory tax rates if their
IRA funds are left to a dependent or family member (other than their
spouse). Any amounts left in an IRA when an individual dies may be taxed
as income to the beneficiary and are also considered assets for the
purposes of calculating that individual’s estate tax liability.
It is estimated that there is more than $3 trillion in
retirement funds such as IRAs. Even if only a small percentage of
these funds were donated to charitable purposes, it could add millions
of dollars to support the vital work that nonprofit organizations do in
communities across America.
By taking advantage of the IRA Rollover provision, individuals
over the age of 70½ can not only help our nation’s charities fulfill
their mission, but they also can liquidate their IRAs tax-free for gifts
to charity (up to $100,000).
Open a Donor Advised Fund !
The Catholic Foundation
offers a vehicle for people who want to make a contribution now and
decide in the future who will receive their gift(s).
Donor Advised
Funds allow individuals to make a single contribution of
$10,000 or more to The Catholic Foundation in either an endowed account
(interest and earnings can be distributed) or a provisional account (the
principal can also be distributed). The donor chooses from income, balanced
or growth funds for the donation investment. At a future time of his/her
choice, the donor advises one or more charities to receive all or part of
the fund.
The donor’s recommended non-profit
recipient(s) must follow the moral teachings of the Catholic Church.
The idea behind this new kind of fund is to begin a relationship between the donor and
the Church, perhaps leading a donor to remember his or her parish or the
diocese as a beneficiary in their estate plan.
For more information about
Donor Advised Funds, click on the highlighted link or
contact The Catholic Foundation at 815-399-4300.
Estate Planning Seminars
We encourage you to promote
Wills to your parishioners. This is the best way to get them thinking of
providing for their families: biological and Church...
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