IRA CHARITABLE ROLLOVERS
New charitable tax advantages for those with retirement funds.

The Emergency Economic Stabilization Act of 2008 may offer you new opportunities for tax-free charitable giving for the rest of 2008 and for 2009. This law includes incentives for people 70 1/2 years of age and older who would like to make charitable gifts from potentially taxable IRA funds. Under this law, these people can use funds from their IRA to make a lifetime gift, free of tax obligations. Before the law, you would take the money from your IRA and report it as income, then make the contribution to the charity and take the deduction - but for only up to 50% of your adjusted gross income. Now, the gift can be made without affecting your income and related taxes.

The law could benefit anyone with a required mandatory distribution (RMD) that would prefer not to have the additional income that year for tax purposes. A RMD could also affect the amount your Social Security is taxed. This could also be a benefit if you do not itemize and would prefer not to.

What are the specifics?

• Must be 70 1/2 or older
• Gift(s) can not total more than $100,000 per calendar year
• Must make the gift(s) before December 31, 2008 or December 31, 2009  
• Must transfer the funds directly from your IRA to the United Way of Greater Chattanooga

For further information, please e-mail Brent Taylor or call 423.752.0310.

** Please consult proper legal advice before any action in order to be sure you qualify and understand the process necessary to qualify for tax advantages.