President Obama has now signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which provides a two-year retroactive extension of the IRA Charitable Rollover. Specifically, the new law reinstates the Rollover for 2010 and allows any eligible gifts made by January 31, 2011 to be treated as a 2010 donation and be used to satisfy the taxpayer's minimum distribution requirement for 2010. The new expiration date for the Charitable Rollover is December 31, 2011.

The Pension Protection Act of 2006 includes the charitable IRA Rollover provision. The rollover provision provides an exclusion from gross income distributions made to a qualified charity from a traditional individual retirement account (IRA). To qualify, the charitable distribution must be made to a tax-exempt organization qualified to accept deductible contributions.

The owner of the IRA may distribute up to $100,000 per year to a qualified charity without including the distribution in his/her adjusted gross income. A donor must be at least 70 1/2 years of age on or before the date of the donation, and may not take a separate charitable deduction for the rollover amount. The annual mandatory distribution may be included in the $100,000 limit for each year.

Email our Planned Giving Coordinator for more information.