IRA distributions rolled over to charity in 2007 could be tax-free up to $100,000!
By age 70½, you must begin receiving distributions from your IRA account, whether you need them or not. However, thanks to the 2006 Pension Act, you can turn this into an opportunity to help improve the lives of those in need, right here in Mesa, by rolling your distribution over to Mesa United Way.
You may roll over your mandatory distribution amount, plus any additional amount desired up to $100,000, directly from your IRA custodian to a charity, without increasing your income. This is commonly called an “above the line” exclusion of income. By contrast, if you were to receive your mandatory distribution and then donate it to charity, it would be considered a normal tax deduction. Depending on your income level, the difference could result in considerable tax savings. Consult your tax advisor to learn how this law would affect you.
Download the IRA Rollover Form here.
This is a great and easy way for philanthropic-minded people to fulfill their desire to help others. However, you must have your donations rolled over to Mesa United Way by December 31, 2008 to take advantage of this opportunity.
Your IRA custodian can forward the funds via electronic transfer. To receive our electronic transfer information, please contact Dan Wollam, Vice President for Community Solutions (480) 969-8601.