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The Pension Protection Act of 2006 (the “Act”)
might provide you with a new opportunity to support your favorite
ministry – perhaps in an extraordinary way.
The Act includes a variety
of charitable giving incentives, most notably a version of the
long-awaited “IRA Charitable Rollover.” Individuals
70˝ years old or older may make a qualified
charitable distribution outright to charity in an amount up to $100,000
per year directly from an Individual Retirement
Arrangement (“IRA”).
Under prior law, these
distributions would be taxable to the IRA owner, but under the Act, the
distribution will be excluded from the donor's taxable income. The
IRA Charitable Rollover is only available in 2006 and 2007.
Another benefit of the IRA Charitable Rollover is
that the charitable distribution may be used by the IRA owner to satisfy
a portion or all of their annual minimum distribution requirements.
You may take advantage of this new
opportunity:
+ if you are age 70˝ or
older
+ for gifts up to
$100,000 each year
+ if you make the gift
on or before December 31, 2007
+ if you transfer funds
directly from an IRA or Rollover IRA
It is important to note that a distribution from an
IRA to benefit the ministry
of the ELCA must be an outright gift distributed
directly from the IRA trustee or administrator. Therefore, life income
gifts such as charitable gift annuities or charitable remainder trusts
are not eligible to be funded by an IRA distribution; nor are
distributions to donor advised funds. Distributions from retirement
accounts other than IRAs are also not eligible under the Act.
How to make a gift:
Contact the ELCA Foundation office
at 1-800-638-3522, ext. 2970 or
contact the ELCA Foundation
Regional Gift Planner
for your area.
Sample
letters:
The examples and information listed above are for illustrative and
educational purposes only and should not be considered tax or legal
advice. Please consult with your tax or legal advisor about proceeding
with your estate plan. The Evangelical Lutheran Church in America, via
the ELCA Foundation, does not offer charitable gift annuities to any
persons in the states of Arkansas and Washington.
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