Gift from an IRA

A special new tax provision now allows you to make a distribution from your IRA to Susan G. Komen for the Cure without incurring any tax on the withdrawal.

Anyone 70 1/2 or older by the end of the year can give up to $100,000 from their traditional or Roth IRA to qualified charities like us. This is very good news for people who want to make a charitable gift from their retirement assets during their lifetime, but have been discouraged from doing it because of the income tax penalty. To take full advantage of the current law, you must act by December 31, 2009, so please join us now in the vision of a world without breast cancer.

The new legislation permits distributions from traditional IRAs or Roth IRAs to qualified public charities which are excludable from gross income, eliminating any income tax penalty for such charitable gifts. The following provisions apply:

The individual beneficiary of the plan must attain the age of 70 1/2 or older at the time of gift.
The qualified charitable distributions may not exceed $100,000.
This tax treatment applies to the 2009 tax year only.
Qualified distributions must be made directly to the charity by the plan trustee.
Qualified distributions may be excluded from gross income for federal income tax purposes.
Qualified contributions are not subject to the deductibility ceiling (50% of AGI) or the reduction rules for itemized deductions.
Gifts from retirement accounts other than IRAs - such as 401k, 403b, and SEP accounts - are not eligible. However, donors may make qualified transfers of money from other accounts to their IRA, and then make a charitable gift from their IRA. Check with your tax advisor.
Donors who do not itemize their Federal income tax returns may make these qualified IRA gifts and exclude such gifts from their reportable income.

Who is most likely to benefit?

Individuals who wish to give more than the deductibility ceiling (50% of AGI).
Individuals who are subject to reduction rules for itemized deductions.
Individuals whose major assets reside in their IRAs and who wish to make a charitable gift during their lifetime.

For further information, please contact:

Susan Schwartz, Director of Development
503.546.7431
sschwartz@komenoregon.org