Tax Savings Alert
Legislation Offers Benefit to Donors of IRA Assets
For a limited time donors can transfer assets from their Individual Retirement Accounts (IRAs) to Andover without realizing the distribution into their taxable income for tax year 2009. This can mean substantial tax savings and may make a lot of sense for you if:
- you make charitable gifts but do not itemize them on your tax return;
- you have to take distributions from your IRA but do not need some or all of the income; and/or
- your charitable gifts now or in recent years equal 50 percent of your adjusted gross income.
Key details relating to this opportunity to use IRAs for lifetime gifts to Andover:
- Donors must be 70.5 years or older at the time of their contribution to Andover.
- Donors can support qualified charitable organizations only. (Donor-advised funds and support organizations do not meet the criteria of the new law.)
- Distribution must be made directly to the charity; donors should not take delivery of the IRA assets themselves.
- The maximum gift per donor is $100,000 for tax year 2009.
To learn more, please contact David Flash, Andover’s director of gift planning (978-749-4297) or Connie Pawelczak, assistant director of gift planning (978-749-4529).
Please note: This information is provided as an educational service and is not intended as legal or tax advice. Consult your own legal and/or tax advisor before making any decision based on this information.