Under the Pension Protection Act of 2006, if you’re
70-and-a-half or older, this year you can transfer up
to $100,000 from your Individual Retirement Account
(IRA) to a qualified charity—such as Palmer College—
without having to claim it as taxable income.
Before now, individuals making withdrawals from their
IRAs had to include each withdrawal as part of their
taxable income but were entitled to a charitable income
tax deduction to offset the inclusion. However, for many
people, the deduction did not fully offset the income so
there was some income tax liability associated with the
withdrawal.
With the new law, no charitable income tax deduction
is allowed for gifts made this way. However, the law has
made charitable giving from an IRA beneficial for a
variety of people, including those who—even though
they don’t need the additional income—are required to
take minimum withdrawals because the amounts gifted
to charity in this way count against the required minimum
withdrawal.
For more information on the IRA charitable distribution
provision, including the types of IRAs which qualify
for this benefit, talk to a qualified financial planner.
For assistance on how you can use this provision to
lend your support to Palmer, contact Senior Development
Officer Lois Kundel, toll-free at (800) 722-2586.
At the prompts, press #3 and #4, or e-mail Lois at
lois.kundel@palmer.edu.