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News on IRA Rollover Provisions

During the remainder of 2006 and all of 2007 donors have an unprecedented opportunity to make a tax-advantaged gift to URI. Congress has just passed, and the president signed, legislation (H.R. 4) that permits tax-free gifts from IRAs (both traditional and Roth IRAs) to qualified charities. The main features of this provision include:

Individuals aged 70.5 or more may transfer funds from their IRAs to charity without having to recognize the amount as income, thus avoiding the federal income tax liability that would otherwise accompany a distribution.

These distributions do count toward the donor’s Minimum Required Distributions from his/her retirement assets.

These distributions do not count toward the existing limits on deductible charitable gifts (i.e. 50% of AGI for cash gifts, 30% for appreciated property), so such gifts can be in addition to other charitable giving.

Distributions must be 100% deductible to qualify, so this applies to outright gifts only, not charitable gift annuities or remainder trusts.

In short, you can now access what may be your largest asset, without adverse tax consequences, to make the gift to URI you have wanted to make in support of our Making a Difference campaign. Please check with your tax advisor to ensure that these provisions apply to you.

For more information, please contact: Paul Witham, Associate Vice President for Development, Alumni Center, 73 Upper College Road, Kingston, RI 02881 Phone: 401-874-5569 Fax: 401-874-2292 Email: pwitham@advance.uri.edu

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Office of Planned Giving, Alumni Center, 73 Upper College Road, Kingston, Ri 02881-2004 Phone: 401-874-2296 or 401-874-5569 • Paul Witham: pwitham@advance.uri.edu

 
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