OPPORTUNITY FOR THOSE AGE 70 1/2 AND OLDER
IRA charitable donation. Congress extended this highly popular provision through 2011, but it will lapse for 2012 unless lawmakers act.
Donors over age 70˝ may contribute up to $100,000 of IRA assets directly to one or more qualified charities (but not a donor-advised fund). The IRA trustee must send the gift directly to the group. There is no deduction, but the gift is excluded from income, so it doesn't swell income in a way that raises taxes on Social Security or Medicare premiums. The gift can count as part or all of the required minimum distribution.
From the Wall Street Journal Tax Report, Saturday, November 26, 2011
The paragraph noted above summarizes an opportunity to make a distribution from an IRA to a charity and avoid paying income tax on the distribution. Some items to consider when looking at this option:
• The distribution must be complete by December 31 in order for this to apply to the 2011 tax year.
• The Wall Street Journal summary above mentions that the IRA trustee must make the distribution. That should ensure that the distribution is made by December 31.
• The “no deduction” note means that the distribution is not a Charitable Deduction on Schedule A.
• The ‘doesn’t swell income” note is a real benefit since the distribution to the charity does not increase your income and your tax rates.
• As noted above, if you have not taken all your required minimum distribution (RMD) for the year, this distribution to charity may be applied to the RMD for the 2011 tax year.
If you are interested in making a gift from your IRA to Brentwood Hills Church of Christ, please have your IRA custodian/advisor contact Jonathan Seamon at the church office to request wiring instructions and coordinate receipt of the gift.
Church of Christ
5120 Franklin Road
Nashville, Tennessee 37220
Phone: (615) 832-2541
Fax: (615) 832-2583