On December 17, 2010, new legislation was passed extending the Charitable IRA allowing American seniors to make the gift of a lifetime—by giving their individual retirement accounts (IRAs) to charity, tax-free. Through 2011, people age 70½ and older can transfer up to $100,000 per year from IRAs to charity—without incurring federal income taxes today or estate and income taxes in the future. If married, each spouse can transfer up to $100,000 per year from his or her IRA.
The opportunity for the $100,000 tax-free transfer expires December 31, 2011.
We realize that you help your clients consider many factors as they make significant financial, estate and charitable decisions. Because this legislation comes so close to the end of 2010, qualified charitable contributions made from IRAs through January 31, 2011 can be applied for 2010 tax purposes. Download this facts sheet to get started.