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Gift Planning

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Encore! Charitable IRA Legislation Passed

The charitable IRA legislation is back for a repeat performance—don't miss this second-chance opportunity to make tax-free gifts from your IRA!

There's good news for individuals aged 70½ or older with individual retirement accounts. Thanks to the extended charitable IRA legislation, you can once again make outright gifts using IRA funds without tax complications.

If you are required to receive minimum distributions from your IRA and you do not need the money for personal use, consider using those funds as a charitable gift. While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount.

You may contribute funds this way if:

  • You are 70½ or older
  • Your IRA gifts total $100,000 or less each year in 2008 and 2009
  • You transfer funds directly from an IRA
  • You transfer the gifts outright to one or more public charities (This excludes gifts made to charitable trusts, donor advised funds and supporting organizations.)

The Benefits—Music to Your Ears

  • In most cases, the transfer counts toward your minimum required distributions.
  • The gift generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.
  • You may transfer up to $100,000 directly from your IRA in 2008 and 2009.
  • The distributions may be in addition to or fulfill any charitable giving you have already planned.

The Next Step
Be sure to contact tax professionals and your IRA administrator if you are considering a gift under this law. Qualifying gifts require that donors cannot receive benefits or perks in exchange for their gifts. Feel free to call Office of Gift Planning at 858-534-2249 or giftplanning@ucsd.edu with any questions.

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Copyright © The Stelter Company, All rights reserved.

The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to income tax apply to federal taxes only. Federal estate tax, state income/estate taxes or state law may impact your results.

For general inquiries, please contact:

The UC San Diego Office of Gift Planning:

9500 Gilman Drive, MC 0937
La Jolla, CA 92093-0937
858-534-2249
www.giftplanning.ucsd.edu