IRA Rollover

Make Tax-Free Gifts From Your IRA

Limited Time: Benefit Ends in 2013

Congress has extended the provision in the Pension Protection Act enabling you to make outright gifts to charitable organizations from your IRA. Individuals 70½ or older may transfer up to $100,000 each year from traditional and Roth IRAs as gifts to Salem Art Association. IRA transfers under this provision count toward minimum annual distributions and are not subject to income tax.

Donations from an IRA are excluded from the 50% of adjusted gross income limitation allowing those who have reached the 50% threshold to give more.

Several federal tax deductions (e.g. dependent and personal exemption deductions and deductions for medical expenses and non-business casualty losses) become smaller as your income increases. By making charitable donations directly from an IRA, rather than taking required distributions that qualify as income, you can keep your annual income down and qualify for other tax deductions.

Be careful, though; the transfer must be made directly from your IRA to the Salem Art Association and not through you as an intermediary.

You may contribute funds this way if:

  • You are age 70½ or older at the time of the gift.
  • You transfer up to $100,000 directly from your IRA. This opportunity applies only to IRAs and not other types of retirement plans.
  • You transfer the funds outright to one or more qualified charities. The legislation does not permit direct transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations.
  • You make your gift by Dec. 31, 2013.

Your benefits:

  • The transfer generates neither taxable income nor a tax deduction, so you will receive the benefit even if you do not itemize your tax deductions.
  • The transfer may count against your unsatisfied required minimum distribution for 2013.
  • You’ll make an immediate impact on us, allowing you to witness the benefits of your generosity.

For more information, please contact Sandra Burnett, Executive Director, at 503-581-2228 x303 or sandra@SalemArt.org.

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