New law extends IRA charitable rollover opportunity for limited-time 
 
 Thanks to a provision in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law on December 17, 2010, people aged 70½ or older can make an IRA charitable rollover until January 31, 2011 and still have it count as a tax-free charitable gift for the 2010 taxable year. For 2011, IRA charitable rollovers must be made by December 31, 2011 to count towards that taxable year.

 How the IRA charitable rollover works:  

If you are at least 70½, the law allows you to transfer up to $100,000 of your IRA assets for each of 2010 and 2011 directly to a qualified public charity, such as The Community Foundation for Greater New Haven.  Since the assets you transfer will not be recognized as income, they will not trigger federal income taxes today or estate tax in the future.  If you are married, you and your spouse can each transfer up to $100,000 per year.

At The Community Foundation, you have a number of options for your IRA charitable rollover:

• Through a transfer to the General Fund, you ensure that grants will be made in perpetuity to address broad charitable purposes and the community's immediate needs.
• You can establish or add to a preference fund in support of a particular area of interest, such as health care services, the arts, or education.
• You can establish or add to a designated fund for one or more nonprofits of your choice. 

Deadlines and other considerations:  

• You have until January 31, 2011 to make your IRA charitable rollover for 2010.
• You have until December 31, 2011 to accomplish your transfer for 2011.
• Only IRA withdrawals qualify for IRA charitable rollover treatment. They cannot come from any other type of retirement plan, nor do they qualify for any additional charitable deduction.
• IRA charitable rollovers cannot be made to donor advised funds, charitable gift annuities or charitable remainder trusts, nor do they apply to private foundations and supporting organizations.

To learn more about this and other charitable giving strategies, contact Angela Powers at apowers@cfgnh.org or call her at 203-777-7068.