The Emergency Economic Stabilization Act of 2008, signed into law by President Bush on October 3, 2008, extends certain portions of the Pension Protection Act of 2006 that expired on 12/31/2007.
This law provides that, in each of the years 2008 and 2009, an owner of a traditional or Roth IRA, who is 70½ or older may instruct the trustee to distribute directly to a public charity up to $100,000 without the distribution being included in taxable income, and that distribution will count toward the IRA owner's mandatory withdrawal amount (or minimum required distribution). To qualify for IRA rollover treatment, a ministry friend must direct the IRA manager to transfer funds directly from the IRA to ADF.
Gifts must be outright; rollovers to a planned gift, such as a gift annuity or a charitable remainder trust, do not qualify. Similarly, outright distributions to a charity from employer-sponsored retirement plans, such as Simple IRAs, 401(k)s, and 403(b)s, do not qualify. Also note that IRA rollovers may be includable in a ministry friend's income for state and local tax purposes and may not earn an offsetting charitable deduction, depending on state and local law.
To support the Alliance Defense Fund by transferring funds directly from your IRA to ADF, follow these very easy steps:
- Speak with your financial advisor to make sure you can take full advantage of the law:
- You must be 70 ½ years of age or older.
- The transfers must go directly from your IRA to ADF.
- Gifts cannot exceed $100,000 per taxpayer per year.
- Gifts must be outright (transfers to donor-advised funds, support organizations, charitable remainder trusts or charitable gift annuities do not qualify).
- Open the document "IRA Charitable Distribution – Letter to Administrator" and add your personal information (i.e., your name, IRA account number, amount, year, etc.).
- Send the letter to your IRA plan administrator. Please keep in mind that gifts you want to count for 2009 will need to be transferred by December 31, 2009 so be sure to give your IRA administrator plenty of time to take care of the transfer.
- Please let us know that you’ve made a gift by completing and sending us the "IRA Charitable Distribution – Letter to ADF." That will help us to follow-up with the necessary paperwork you will need to file with your taxes.
You can also call the ADF Gift Planning Department with any questions or concerns you may have. It would be an honor to speak with you about giving through an IRA or any of the many other ways now available.
You can reach us at 1-800-TELL-ADF (1-800-835-5233) and asking for Lisa Reschetnikow or by email at info@telladf.org.
Related information
IRA Charitable Distribution – Letter to Administrator
IRA Charitable Distribution – Letter to ADF