New tax legislation offers – 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.
The Pension Protection Act of 2006 allows distributions up to $100,000 per year per taxpayer to a qualified charity 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. If you do not have an IRA, 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 2007 if you are planning to take advantage of this limited time offer.
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 also 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 gift-planning@wsu.edu. You may also visit ONLINE @ www.wsufoundation.wsu.edu/ira-legislation.html for more information.
