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IRA Charitable Rollover
Under the Emergency Economic Stabilization Act of 2008
(passed by Congress on October 3, 2008, as an extension of the Pension Protection Act of 2006)
Key Facts
Taxpayers age 70½ and older are permitted to make tax-free distributions to charitable organizations of up to $100,000 from Individual Retirement Accounts (IRAs) or Roth IRAs during 2008 and 2009.
- Distributions must be made directly to the charity; funds may not pass through the taxpayer’s hands.
- Charitable distributions can be counted toward an individualÕs required minimum distribution for that year.
- A donor’s total combined IRA rollover contributions to charitable organizations cannot exceed $100,000 in any one year.
- Contributions may be made from traditional or Roth IRAs only.
- Distributions must be outright gifts; they may not be used to fund a planned gift such as a charitable remainder trust.
Who May Benefit?
(Donors must be 70½ or older at the time of the distribution.)
- Donors who have reached the 50% charitable giving limit; IRA donations are excluded from the percentage limit.
- Taxpayers who don’t itemize their deductions, and who would otherwise not receive a tax benefit for charitable donations.
- Taxpayers who live in states (including Massachusetts) that do not permit tax deductions for charitable donations. By making the donation through an IRA, the taxpayer excludes the amount from his/her state income, and, therefore, from state taxes.
How to Make a Tax-free IRA Gift to MASS MoCA
Contributions must be made directly from the IRA to MASS MoCA.
Contact your IRA administrator and request a distribution to MASS MoCA. Tell the administrator that you are making a distribution under the Emergency Economic Stabilization Act of 2008 and ask that the funds be sent directly to MASS MoCA.
- If the distribution is made by check, it must be payable to MASS MoCA, and may be sent to:
MASS MoCA
1040 MASS MoCA Way
North Adams, MA 01247
- If the distribution is to be made by wire transfer, or if you wish to transfer securities directly, please contact Laurie Werner at MASS MoCA for instructions: 413.664.4481 x8145 or lwerner@massmoca.org.
Further detailed information on tax-free IRA charitable gifts may be found on the web site of Independent Sector.
MASS MoCA does not provide tax advice. Please consult your legal or tax advisor for professional guidance before initiating a transfer.
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