Another provision under the Bush tax cut legislation involves the reinstatement of a very popular benefit for those aged 70 1/2 and older.
The provision expired at the beginning of 2010, but has now been reinstated. Here are the details that you need to share with those who are in the qualifying age bracket:
- The provision allows someone over 70 1/2 years of age to donate up to $100,000 of their IRA assets to a charitable organization.
- The donor’s contribution can satisfy the required minimum distribution for the year and does not have to be counted as taxable income.
- Those who qualify to make this gift, need to seek counsel from their tax attorney or licensed financial planner for the details.
The Wall Street Journal did a nice article on this provision.
Here’s a point of URGENCY – through January 31, 2011, the donor can make a gift that still counts for 2010. This means the individual can make an IRA contribution this month that counts for 2010, then make a second contribution later this year for 2011.
Get this news out to your congregation and constituents as soon as possible!