There are just a few more months to take advantage of the IRA Charitable Rollover, which is set to expire on December 31, 2009.

On October 3, 2008 President Bush signed into law, as part of the Emergency Economic Stabilization Act of 2008, an extension of the charitable IRA legislation.  Originally enacted in the Pension Protection Act of 2006, this legislation provided people aged 70½ or older with tax incentives for charitable rollovers.  This provision was in place during 2006 and 2007 but had expired as of Dec. 31, 2007.  With the extension, however, people can continue making gifts through 2009.

Thanks to this recently extended IRA Rollover provision, interested donors can once again fulfill their charitable plans without the income tax burden typically associated with IRA assets.

The law provides an exclusion from gross income for otherwise taxable IRA distributions of up to $100,000 per year from traditional IRAs and Roth IRAs.  The exclusion applies to "qualified charitable distributions" made by plan owners who have reached age 70 1/2 on the date of distribution to charity.  The gift does not qualify for an additonal income tax charitable deduction because IRA assets are pre-tax assets.  Excluding from income the money that comes out of your IRA and directing it to San Miguel Schools is the key, and this advantage can really help at tax time.  The exclusion applies to traditional IRAs and Roth IRAs only.  Here's how it works.

• You ask your IRA administrator, in writing, to send a check directly to San Miguel Schools.
• The distribution from the IRA is excluded from your gross income for federal tax purposes.
  
• An individual 70 1/2 can exclude up to $100,000 per year by qualified IRA distribution.
• The IRA Rollover is for outright gifts only - you may not use it to fund a life income plan such as a CGA or charitable remainder trust. 
  

The plan owners who tend to benefit most from these new rules are non-itemizers, donors whose charitable deductions are maxed out, and donors in states that don't allow charitable deductions, like Indiana.

Contact us to learn more about the IRA Charitable Rollover.  It's a smart way to give, and knowing all your options is important when you make your personal financial and charitable plans.  For more information about the IRA Charitable Rollover, click here for a fact sheet provided by IndependentSector.org.

To learn how you can use the rollover to support San Miguel Schools, in a way that best suits your overall financial plan, contact Lindsey Lopez at 773/890-0233 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .