New tax legislation allows — for a limited time — a way to make gifts to the WSU Foundation and other charities using individual retirement accounts (IRAs) without negative tax consequences.
Similar to previous legislation called the Pension Protection Act of 2006, the Emergency Economic Stabilization Act of 2008 allows distributions up to $100,000 per year per taxpayer to qualified charities from a traditional or Roth IRA.
The distributions are not reportable income to the plan owner, nor does he or she receive a charitable income tax deduction. The distribution can satisfy the plan owner’s required minimum distribution.
To take advantage of this opportunity, the plan owner must be 70½ years of age by the date of distribution. For those without an IRA, assets from other retirement plans, such as TIAA-CREF (a 403(b) plan), can be rolled over into an IRA to benefit from this legislation. Distributions must be made in calendar year 2009 for this limited-time opportunity.
A qualified charitable distribution from an IRA can help donors maximize their Social Security benefits, assist donors whose income level triggers the phase-out of their exemptions, and benefit donors who typically use the standard deduction on their income tax.
To learn more about making a gift to WSU from your IRA, contact the WSU Foundation Gift Planning Office at 800-448-2978 or 335-7883, or e-mail email@example.com. You may also visit ONLINE @ www.wsufoundation.wsu.edu/giftplanning/ira-legislation.html.