Charitable IRA 

Pension Protection Act of 2006 Extended 

As part of recent economic legislation, Congress has voted for an extension of the popular Pension Protection Act of 2006 provision which allows taxpayers over 70½ to make tax-free distributions from their traditional and Roth IRAs (Individual Retirement Accounts) directly to charity in 2008 and 2009. Making gifts from IRA funds that would be subject to tax if withdrawn voluntarily or under mandatory withdrawal requirements may be a wise choice for you this year.

For 2008 and 2009, Congress is allowing individuals with traditional or Roth IRAs to make tax-free gifts directly to qualified charities, such as Trinity (not to donor advised funds or private foundations). Check with your advisors to determine if funds that have been transferred from another account to an IRA can be used to make charitable gifts.

Donors may make charitable distributions from their IRA in any amount up to $100,000, if so desired. A couple with separate IRAs could each give up to that amount.

Giving from an IRA assures that these funds will never be subject to income or estate tax. This may make it possible to give more at the same or lower cost than in the past. Please check with your IRA administrator or tax advisor for applicable time limits and other details.

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If you are over the age of 59½, funds may not be distributed directly to charity, but can be withdrawn from IRAs and other retirement accounts and then donated to charity without payment of a 10% penalty for early withdrawal.

While amounts withdrawn and donated in this way are reported as part of your income, they can then be deductible as charitable contributions, which can result in a “wash” for federal income tax purposes. Please check with your advisors for more details.