 Charitable IRA rollover set to end December 31 The charitable IRA rollover - which allows the owner of a traditional IRA who is 70 1/2 or older to transfer up to $100,000 directly to charity without paying income tax - is scheduled to end on December 31. Unless the law is extended in the coming weeks,
all withdrawals after the end of the year must be declared as income.
It may be advantageous for some people to take minimum distributions in 2009, although individuals are not required to do so.
Who should consider this?
- donors who do not itemize deductions;
- donors who have exceeded the 50% annual deduction limitation for the year or who have charitable tax deduction carryforwards; and
- donors who wish to reduce the taxable portion of their estate.
There also may be advantages for individuals to transfer a traditional IRA to a Roth IRA. In 2009, only taxpayers with adjusted gross incomes of $100,000 or less are allowed to make these transfers; beginning January 1, all taxpayers may make such transfers. There is a one-time income tax on the assets transferred, after which there are no further income taxes. Individuals may lower their one-time taxes by making increased charitable gifts during the year the transfer is made. For additional information, please email Kimberly Butler, vice president, gift planning & stewardship, or call her at (401) 427-4040. Kim will be happy to work with you and/or your professional advisor. |
|
| Stocks & bonds: still good charitable gifts!
Although many stocks and bonds still are recovering from the down economy, others have appreciated considerably since the market's March low. If your stock is worth more than you paid for it and you've held it for longer than one year, it may be a wise end-of-year charitable gift. |
