Giving Through Your

IRA

A Great Way to Fulfill Your Pledge for the New

Building Project

As everyone is aware, Congress passed the Emergency Economic Stabilization Act of 2008 on October 3, 2008.  Although the primary focus of the bill was the $700 billion 'bailout' of the U.S. financial system, it also included many other provisions that have estate planning implications.

One such provision is the extension of the IRA Charitable Rollover tax incentive which will be in effect until the end of 2009.

• Donors must be 70½ or older, and own a traditional or Roth IRA. 

• Donors must direct the IRA manager to transfer funds directly to a public charity, such as Salem First Church of the Nazarene. A withdrawal followed by a contribution would not qualify and would be reported as income.

• The transfer must be for an outright gift only.  (IRA gifts cannot be made to a charitable remainder trusts or other annuity arragements.  Transfers are not permitted to donor advised funds to supporting organizations.)

• IRA gifts can be any amount up to a maximum of $100,000.

• No Charitable deductions are allowed, but gift amounts will not be included in the donors' incomes.  Donors may satisfy charitable pledges, such as the new building project, with IRA distributions.

The Emergency Economic Stabilization Act contains numerous other provisions which may affect donors and charities.  It is important to consult with your financial planner, attorney, and/or accountant before making a charitable gift.

If you need assistance, please call Tim Abrahamson (503) 931-5510 or Jerry Morris (503) 581-3680