development

Pension Protection Act makes transferring charitable gifts easier

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.

< article article >
Top