< PLANNED GIVING & CHARITABLE BEQUESTS IRA CHARITABLE ROLLOVER RESTORED - Contributed by MontereyTrust.com Staff Writers January, 2009 Older Americans are once again able to contribute directly to public charities from their individual retirement accounts, thanks to a provision in the Emergency Economic Stabilization Act of 2008 (H.R.1424), signed into law on October 3, 2008 . The IRA Charitable Rollover tax incentive, which is available through 2009, allows individuals aged 70½ and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) and Roth IRAs to public charities without having to count the distributions as taxable income.   Since enactment in August 2006, the IRA Charitable Rollover gave older Individuals the opportunity to give back to their communities by eliminating the barrier in the tax law that had discouraged transfers from individual retirement accounts to charities. The giving incentive is particularly beneficial to those individuals who do not itemize their tax deductions and would not otherwise have received any tax benefit for their charitable contributions. The IRA Charitable Rollover allows older Americans to make millions of dollars of new contributions to the nonprofits —including hospitals, museums, educational institutions, and religious organizations —that benefit people every day. Current Law The reenacted IRA Charitable Rollover provision permits individuals age 70½ and above to make charitable donations of up to $100,000 from IRAs and Roth IRAs without having to count the distributions as taxable income. The IRA Charitable Rollover is intended to benefit donors of all incomes, as well as big and small nonprofits alike. Now is your opportunity -- as a charitable organization or as a donor -- to take advantage of this valuable incentive. · How does the IRA Rollover Work? Taxpayers age 70½ and older are required to make annual distributions from their IRAs. The distributions are included in the taxpayers’ adjusted gross income (AGI), and taxpayers pay taxes on them. The IRA Charitable Rollover permits taxpayers to make donations directly to charitable organizations from their IRAs without counting them as part of their AGI and, consequently, without paying taxes on them. · Give Now. Only contributions made between January 1, 2008 and December 31, 2009, are eligible for the enhanced tax benefit.   · Age Requirement. Donors must be 70½ years old or older when the distribution is made. · Donation Limit. A donor’s total combined charitable IRA rollover contributions cannot exceed $100,000 in any one year. · Eligible Charities. Charitable contributions from an IRA must go directly to a public charity. Contributions to supporting organizations, donor-advised funds, and private foundations, except in narrow circumstances, do not qualify for the tax-free treatment. · Eligible Retirement Accounts. Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment. · Directly to the Charity. Distributions must be made directly from the IRA trustee payable to the public charity.   · No Gifts in Return. Donors cannot receive any goods or services in return for charitable IRA rollover contributions in order to qualify for tax-free treatment. · Written Receipt. In order to benefit from the tax-free treatment, donors must obtain written substantiation of each IRA rollover contribution from each recipient charity.

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