If you are 70 ½ or older, you have the ability in 2011 to transfer money tax-free from your IRA and contribute to Our Kids. This can be an excellent way to advance both your charitable and estate planning goals. While you will not receive a charitable deduction for a transfer from your IRA to Our Kids, the amount of your transfer will not be included in your gross income or your taxable estate.
After a year of tax uncertainty and confusion, Congress passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) that not only reinstated the Bush tax cuts that were set to expire at year end but also provides additional tax incentives and favorable estate and gift tax provisions.
One of the reinstated tax incentives is the tax-free distributions from IRAs (in 2011) of up to $100,000 for charitable purposes if the taxpayer is at least 70 ½. If you are 70 ½ or older, this provides a great opportunity to make charitable gifts directly from your Individual Retirement Account (IRA) until December 31, 2011. You can access up to $100,000 of your IRA assets without paying income tax.
As you plan for your 2011 charitable gifting, we hope you will remember Our Kids. If you have any questions regarding making a tax-free distribution from your IRA to Our Kids, please do not hesitate to contact your tax advisor or Our Kids Executive Director Sue Fort White.
Our Kids provides this educational information as a service to its supporters. This page is intended to provide general gift planning information only. Our Kids cannot provide legal, investment or tax advice and should not be looked to or relied upon as a source for such. Rather, this page simply contains information that you can discuss with your attorney or financial advisor. Please consult with your financial or legal advisor before making any gift.