Take Advantage of Charitable IRA Legislation

Charitable IRA legislation, effective until December 31, 2011, enables you to make a charitable gift using funds from your IRA account without incurring income tax on the distribution. To qualify for the tax free “rollover,” certain requirements must apply.

Requirements

• You are 70½ or older at the time of your gift
• Transfers must be made from your IRA by your plan provider directly to a public charity.
  Use this sample letter to request a distribution from your custodian.
• Gift must be made outright. Funds used to establish a charitable gift annuity or a charitable remainder trust do not qualify
• Each individual can gift a total of $100,000 in 2011.

Benefits

• You pay no federal taxes on the IRA withdrawal, and the gift decreases your taxable estate.
• Gifts count toward satisfying your annual Minimum Required Distribution.
• Gifts are not subject to the 50% deductibility ceiling or 2% rule.
• The distributions enable you to make an additional gift for Texas A&M or fulfill the charitable giving you have already planned.
• You get to decide how your gift will benefit Texas A&M. For example, you could support the MSC renovation and expansion project using funds from your IRA account.