Charitable IRA Rollovers

Looking for a creative way to support OEC and stretch your retirement dollars a little farther?

A provision in the $700 billion bailout that Congress recently passed extends and makes retroactive Charitable IRA Rollovers for 2008 and 2009. This is great news for people looking to maximize their charitable contributions to non-profits such as OEC while minimizing the tax consequences of the Required Minimum Distribution from their IRAs. The extension is retroactive to January 1, 2008 and applies to all charitable IRA rollovers made through December 31, 2009.

Here are some highlights:

  • You, the donor, must be at least 70.5 or older
  • IRA Rollovers must be made to a qualified 501(c)3
  • You may donate up to $100,000
  • Contributions must be made directly from your IRA to the charity
  • Contributions for 2008 must be made by December 31, 2008 (the same applies for 2009)

How this benefits you:

A charitable IRA Rollover allows you to donate funds directly from your IRA to a charity. You avoid having to pay taxes on the funds transferred from your IRA, with the withdrawal still counting towards your Required Minimum Distribution.

This might be especially helpful if you:

  • Have income sources in addition to your IRA
  • Are unable to itemize your tax return
  • Itemize your return and have reached your charitable giving limit
  • Want to make a major gift and hope to minimize your tax liability

If you are interested in making a contribution to OEC via a Charitable IRA Rollover, be sure to consult your tax professional to ensure that you qualify.