|
 |
|
| |
In August 2006, President Bush signed the Pension Protection
Act of 2006 which includes a provision for IRA charitable
rollovers, formally known as qualified charitable
distributions. The legislation enables individuals aged 70 ½
or older to make qualified charitable distributions directly
from their Individual Retirement Accounts (IRA) to the
charity of their choice.
Prior to the Pension Protection Act of 2006, such a
charitable contribution required two steps: donor first had
to report the IRA withdrawal as income and then take an
income tax charitable contribution deduction. Those
taxpayers facing reductions on their deductions could not
completely offset the income tax cost of their IRA
withdrawal with a corresponding deduction for their gift to
charity.
The PPA 2006 provides a one-step option for making a
charitable gift of an IRA asset; qualifying donors can
direct a qualified charitable distribution to go directly to
Pomona or another qualified charity. The simplicity of the
qualified charitable distribution is the greatest benefit of
such a gift because there is no federal income tax event for
the IRA owner.
Important points to consider:
- You must have reached the minimum age of 70 ½ at the
time of the transfer
- IRA charitable transfers may be any amount up to a
maximum of $100,000 per taxpayer
- Gifts must be outright to qualified charities; you are
not allowed to direct these gifts to a charitable
remainder unitrust, gift annuity, donor-advised fund or
supporting organization
- Such a gift must be completed by December 31, 2007
- No charitable income tax deduction is allowed for
these gifts
- Your gift in the form of a qualified charitable
distribution from your IRA to Pomona will not be subject
to income tax on your tax return
If you are interested in completing such a gift, we’ve
provided several resources for you:
Direct to Letter 1: This
is a letter template for you to use to instruct your IRA
custodian or administrator to direct a qualified charitable
distribution to Pomona.
Direct to Letter 2:
This is a letter template for you to use to alert us so that
we can be looking out for your expected gift.
Gift Acknowledgement: This is a draft sample of
a gift acknowledgement that we will send to you when you
complete your gift of an IRA qualified charitable
distribution. We will also forward a confirmation receipt to
your IRA custodian or administrator. |
|
|
 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
|
Quick Links |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Explore Pomona's Web |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Find It |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Search |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
