The compromise tax bill just passed by Congress and signed into law by the President, extends until December 31, 2011, a provision known as the “Charitable IRA Rollover” which allows taxpayers age 70Â½ or older to make tax-free transfers (of up to $100,000 per year) directly from their IRA to charities.
People can make distributions directly to one or more charities from their traditional or Roth IRA, as long as they are at least 70 Â½ years old when they transfer the gifts. Such gifts can be made without increasing their taxable income or withholding. Â Also, funds transferred from a person’s IRA to a charity will NOT subject their Social Security income to higher tax levels, and will count toward their minimum required distribution (MRD).
Because the law became effective so late in the year, donors have been allowed an extra month (through January 31, 2011) to complete transfers for 2010.
[box type=”info”]To make a donation to the Dana Point Historical Society under the terms of this program, please contact Bruce Beal immediately at (949) 481-5555 or firstname.lastname@example.org. Deadline for 2010 is Jan. 30, 2011.[/box]