IRA Charitable Rollover Legislation For Donors Age 70 ½

Dear Friends,

I'm writing to share some good news.  As part of the recent economic recovery legislation, Congress extended a provision that permits you to use your IRA to help accomplish your philanthropic goals. 

If you are 70 1/2 or older, you may make a gift of up to $100,000 per year to the Jewish Federation of Greater Phoenix from your IRA with no federal income tax impact, and your gift will be counted toward your required minimum distribution.  To obtain this benefit, you must instruct your IRA administrator to transfer funds directly to us. If you withdraw the funds from the IRA first and then contribute them to the Federation, you will lose the tax benefit.

This charitable IRA rollover, as it is called, is only available this year and next.  We urge you to act soon to take advantage of the 2008 opportunity to pay or increase your Annual Campaign gift, or to create an endowment that will make a gift to the Annual Campaign every year in perpetuity.

For additional information, please call me at 480-634-4900 x1105.  Of course, we encourage you to seek the advice of your professional advisor before you make a charitable IRA rollover gift.

Sincerely,

Daniel H. Nathanson
Campaign Director

Additional details: Unlike a cash withdrawal from your IRA, your direct contribution will be excluded from income for federal purposes and not taxed.  It will not be eligible for a charitable tax deduction, but it will not count toward the annual percentage limitation on your other deductible gifts, nor will it reduce your other itemized deductions.  Your direct contribution cannot be made to donor advised funds, supporting organizations, split-interest trusts or in exchange for gift annuities. Your qualified distribution may be includable in your income for state and local tax purposes, and an offsetting charitable deduction may not be available.

The views expressed in this letter are not intended, nor may they be relied upon, as legal, accounting or other professional advice.