Older members and friends of the congregation are once again able to contribute directly to public charities from their individual retirement accounts (IRAs)!
Part of the Emergency Economic Stabilization Act of 2008 (commonly known as the bailout bill) passed by Congress and approved by the President in October retroactively restored the "IRA Charitable Rollover" option to January 1, 2008 and extended it through the end of 2009.
Basically, anyone 70 & 1/2 or older is required to take an annual distribution from any traditional or Roth IRA they own. However, you can direct that one or more distributions (up to a total of $100,000 in one year) can be taken directly from your IRA and paid to charitable organizations of your choice.
While helping to satisfy your annual distribution requirement, the payments to the charitable organizations are NOT considered part of your Adjusted Gross Income (AGI) on your income tax return, so you do NOT pay any income taxes on these payments!
First Presbyterian Church of Palo Alto is a qualifying charitable organization, so this represents another way to give money to the church. In order for a donation to qualify, there are some very specific requirements for the donor, the financial institution which manages the IRA and the charitable organization receiving the donation.
Please see:
www.independentsector.org/programs/gr/irarollover.html
for more information. If you have any questions about making an IRA Charitable Rollover contribution to First Presbyterian, please contact me.
Regards,
Alec Henderson
Finance Ministry Chair and Treasurer
This information is intended to provide general guidance and is not a substitute for professional counsel. Consult your tax or legal advisor for professional guidance.
