IRA Charitable Rollover Passes for 2008-2009
Washington - The U.S. Senate attached a package of tax benefits to must-pass legislation to rescue the troubled financial sector, increasing the odds that the expired benefits could be renewed this year.
The package newly added to the bailout bill, which was passed by the House today, would extend for two years a tuition tax deduction, a research-and-development tax credit, and an IRA rollover for charitable contributions.
This act permits an IRA owner age 70½ or older to make a direct transfer to charity. The transfer may be up to $100,000 in one year and this IRA rollover will exist for year 2008 and year 2009.
Donors who give any amount can save taxes:
* Tax on Social Security benefits is minimized by keeping IRA distributions out of taxable income;
* Donors who are no longer able to itemize deductions enjoy a reduction in taxable income;
* Donors who give large gifts can keep their tax return simple by keeping their taxable income lower
* Donors who want to give above the 50% deduction level can do so without a carryforward limitation.
Call Jim Cross at 800-617-9905 x 120 or email for more information.
To read more about the IRA Charitable Rollover, click here.
