December 6, 2013
By Ramonica Jones
Special IRA Gifts to Expire December 31
Are you 70 ½ or older?
Did you know that Congress reinstated a law that allows you to give a gift from your IRA directly to a qualified charity such as Special Olympics Texas without having to pay income taxes on the money? Known as the “IRA charitable rollover bill,” this law was extended until December 31, 2013.
Your gift will qualify under this law if:
• You are age 70 ½ or older at the time of your gift
• You transfer the money directly from your IRA. This opportunity applies only to IRAs.
• You transfer 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. Consult with your tax professionals if you are considering a charitable gift under the IRA charitable rollover law.
Gifts from Any Retirement Plan
Whether or not you meet the age requirement for the IRA charitable rollover bill, you can make a big difference with just a little effort by designating Special Olympics Texas as a beneficiary of your IRA, other retirement plan assets, life insurance or insurance annuities. Retirement plan assets may be subject to substantial income and estate taxes when given to any individual other than your spouse. However, they are tax-free when given to charity. When you name Special Olympics Texas as a beneficiary for a percentage (1% to 100%) of your account’s final value, you can make a tax-wise gift to support the Special Olympics Texas mission after your lifetime. It is easy to do and costs nothing to set up. Contact us for more information.