IRA Charitable Rollover Extended
Since Emmanuel relies heavily on the gifts of individuals and churches, the shaky economy has made this a rough time for Emmanuel. Emmanuel donors have given generously to scholarship funds, phonathons, building funds, and other special campaigns.
Emmanuel also offers several ways that individuals can give through Planned Giving or Estate Planning options. We would like to make you aware of one Planned Giving option: an IRA Charitable Rollover.
The IRA Charitable Rollover tax incentive (originally the Emergency Economic Stabilization Act of 2008), is now available through December 31, 2011, allowing individuals aged 70 ½ and older to donate up to $100,000 from their individual
Retirement Accounts (IRAs) and Roth IRAs to public charities, like Emmanuel Christian Seminary, without having to count the distributions as taxable income. The giving incentive is particularly beneficial to those individuals who do not itemize their
tax deductions and would not otherwise have received any tax benefit for their charitable contributions. The IRA Charitable Rollover allows older donors to give to Emmanuel in ways not allowed otherwise.
• How does the IRA Rollover work?
Taxpayers age 70 ½ and older are required to take annual distributions from their IRAs. The distributions are included in the taxpayers’ adjusted gross income (AGI), and taxpayers pay taxes on them. The IRA
Charitable Rollover permits taxpayers to make donations directly to charitable organizations, like Emmanuel, from their IRAs without counting them as part of their AGI and without paying taxes on them.
Give Now! Only contributions made before December 31, 2011, are eligible for the enhanced tax benefit. (Contributions made in January 2011 may be treated as having been made in 2010 or 2011.)
• Age Requirement. Donors must be 70 ½ years or older when the distribution is made.
• Donation Limit. A donor’s total combined charitable IRA rollover contributions cannot exceed $100,000 in any one year.
• Eligible Charities. Charitable contributions from an IRA must go directly to Emmanuel. Contributions to supporting organizations, donor-advised funds, and private foundations,
except in narrow circumstances, do not qualify for the tax-free treatment.
• Eligible Retirement Accounts. Distributions can only be made from traditional individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k)
plans, pension plans, and other retirement plans are ineligible for the tax-free treatment.
• Directly to the Charity. Distributions must be made directly from the IRA trustee payable to Emmanuel Christian Seminary.
• No Gifts in Return. Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment.
• Written Receipt. In order to benefit from the tax-free treatment, donors must obtain written substantiation from Emmanuel of each IRA rollover contribution. And we are happy to do so.