A one-month bonus
A change in federal law allows charitable distributions made from an IRA in January 2011 to be declared as 2010 gifts.
There's good news as we head into 2011, and it's not just a fresh start to the new year. In this month only, a change in federal law allows persons age 70½ or older to enjoy tax savings by making charitable gifts directly from Individual Retirement Accounts, thanks to a provision of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which was signed into law December 17. The act also allows charitable distributions made from an IRA in January 2011 to be declared as 2010 gifts, should the IRA holder wish to do so.
This is the latest version in a series of laws extending IRA contributions. For a charitable gift made from an Individual Retirement Account (IRA) not to be taxed as income, There are some requirements:
• the gift must have been made in 2010 or 2011;
• the IRA holder is age 70½ or older;
• the gift totals $100,000 or less each year;
• the charity that received the gift is eligible to receive tax-deductible contributions;
• the charity is not a section 509(a)(3) supporting organization;
• the withdrawal goes directly from the IRA to the charity
The good news is Church World Service meets all of the requirements mandated by the law. A donor does not need to itemize his or her taxes to benefit from the distribution. If the donor does itemize, however, he or she cannot also take the distribution as a deduction.
So even as we start a new year we can look back on, what I hope, was a successful 2010 for you and yours. Your gift to CWS will provide food, clean water, shelter and other things too many people in the world lack. Let us help you take advantage of these tax benefits so that everyone can have Enough for All in 2011.
For more information, check out www.cwsplannedgift.org or contact Ronald Blaum, Director of Gift Planning, at
800-297-1516, ext. 444, or email him at firstname.lastname@example.org.