Tax Incentive
IRA Rollover Passes for 2010 and 2011
On the afternoon of December 17, 2010, the President signed into law The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This bill restores the IRA Charitable Rollover for 2010 and permits its use in all of 2011. The act is retroactive to January 1, 2010, so donors who previously made 2010 IRA rollovers will qualify.
The principal rules for direct transfers from an IRA to a qualified public charity are:
- that the IRA owner must be 70 1/2 or older
- that the transfer is for no more than $100,000 each year per person
- a 2010 transfer qualifies for the required minimum distribution
- it must be to a public charity either outright or for a specific purpose, but may not be to a donor advised fund or supporting organization
- the transfer is made directly from a trustee to the charitable organization
A very important potential 2010 benefit exists. Because Congress recognized that it is very late in the year, individuals who choose to make a qualified charitable distribution (QCD) rollover from their IRA trustee to a charity may make their 2010 charitable gift during 2010 or in January of 2011.
Make a gift
You may wish to consult a tax professional before making a gift under this new law. For more information about making a gift to the Clark College Foundation, contact the Foundation's Director of Major and Planned Gifts, Daniel Lee, at dlee@clark.edu or 360.992.2542.
