By Jim Kozel
More than 5,814 individuals have contributed $102 million to charities through IRA rollovers since Congress passed the Pension Protection Act of 2006, according to figures released last month by the National Council on Planned Giving (NCPG).
Taking advantage of the provisions of the Pension Protection Act of 2006 may be a great way for you to support Rocky Mountain Institute. The law allows you to make a charitable transfer from your IRA directly to RMI without paying income tax on the withdrawal. Although the transfer does not generate a charitable deduction, it does count toward your 2007 required minimum distribution. Note: although there is no minimum, the maximum amount allowed for a charitable rollover is $100,000.
To qualify for IRA rollover treatment:
• You must be at least 70.5 years of age;
• You must have your IRA manager transfer funds directly to Rocky Mountain Institute no later than December 31, 2007; and
• Your gift must be outright. Rollovers to a planned gift, such as a gift annuity or a charitable remainder trust, do not qualify. Neither do outright distributions to a charity from employer sponsored retirement plans, such as SIMPLE IRAs, 401(k)s, and 403(b)s.
For the right individual, the IRA rollover presents a wonderful opportunity to make a tax-wise and generous gift, and it can be as simple as directing your IRA fund manager to make a direct transfer to RMI.
Please consult your financial advisor if you meet the qualifications for an IRA rollover and would like to take advantage of this wonderful giving opportunity. You may also contact Jim Kozel (at 303-567-8716 or by email at jimkozel@rmi.org) with questions about making an IRA rollover gift to Rocky Mountain Institute.
Jim Kozel is a Senior Development Officer at RMI.
Note: IRA rollovers may be included in your income for state and local tax purposes and may not earn an offsetting charitable deduction, depending on state and local law.
