IRA DISTRIBUTION BENEFIT

Over 70 ½ golden years of age…read on.

Tax-Free Gifts from IRA Accounts Re-authorized!

On October 3, 2008 legislation to renew a popular opportunity for charitable giving was re-authorized. People over age 70½ can again donate as much as $100,000 from their individual retirement accounts to a charity tax free.

Are you age 70½ or older and are required to take minimum withdrawals on your IRA account?

Please consider naming the Diocese of Joliet or the Catholic Education Foundation as the beneficiary of your gift.

To get your assets transferred successfully, it is important to give clear instructions to your IRA custodian, and also to alert the Development Office of the gift.
To qualify:

You must be age 70½ or older at the time of the gift.
Transfers must be made from a traditional or Roth IRA account by your plan provider DIRECTLY to the charity. Funds that are withdrawn by you and then contributed do NOT qualify.
Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.

Benefits--Qualified charitable distributions:

Can total up to $100,000 in each tax year (if your spouse has a separate IRA account, you can each contribute up to $100,000 per tax year);
Can be excluded from your gross income for federal income tax purposes (no charitable deduction is available, however);
Can be used to satisfy your Minimum Required Distribution (MRD);
Are not subject to the 50% deductibility ceiling or the 2% rule.

Example: Let's say you're required to withdraw $12,000 from your IRA before Dec. 31, and you wish to give $10,000 to a charity. If you direct your IRA custodian to send $10,000 that money would count toward your required distribution for 2008 -- and you would end up reporting only $2,000 in IRA distributions (instead of $12,000) on your tax return.

Please contact the Development Office at the Diocese of Joliet with your questions and to notify them of your gift.

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