McGrady Establishes Scholarship With PPA Legislation

When Harold (Hal) McGrady learned he could make a charitable gift directly from his IRA without tax consequence, he didn’t waste any time calling the BGSU Foundation to establish a scholarship for students following in his career path.

A 1954 BGSU graduate with a double major in speech/hearing therapy and drama, Hal furthered his education at The Ohio State University with a masters in audiology and later received a Ph.D. at Northwestern University in language pathology. He spent 50 years in the field of communication disorders as a therapist, educational administrator and lobbyist for persons with disabilities.

The Pension Protection Act (PPA) of 2006 allowed Hal to contribute funds directly from his IRA without tax complications. Hal could count the gift toward his mandatory distribution, but he didn’t have to take it as taxable income.

Like most retirees, a large portion of Hal’s assets are in his retirement accounts. Once a person turns 701/2 he or she is subject to the required distribution rules. The PPA allows gifts made from an IRA to count toward the required minimum distribution. The funds must be sent electronically or by a check made payable to the charitable organization in order to qualify.

Thanks to the PPA, Hal was able to fulfill his dream of creating a scholarship for BGSU communication disorder majors. “BGSU gave me a great start for a successful career and a good life,” Hal said. “Now I can help others who want to follow the same path.”

As it stands, the PPA is only in effect through Dec. 31, 2007. By acting quickly, Hal maximized his gift over the two years the law will be in effect. If you’d like to know more about this opportunity, please contact the BGSU Office of Gift Planning.

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