Hospice in the News

 

Tax-Free Distributions from Individual Retirement Accounts Can Benefit Hospice

 

The Emergency Economic Stabilization Act of 2008 includes a two-year extension of the charitable IRA Rollover provision. The original Pension Protection Act of 2006 enacted by United States Congress included charitable giving incentives that are designed to encourage charitable planned gifts and donations. Included in the bill are tax-free distributions from Individual Retirement Accounts (IRA's) for charitable purposes.

 

The provision provides exclusion for gross income for certain distributions of up to $100,000 from a traditional IRA or a Roth IRA, which would otherwise be included as income. To qualify, the charitable distribution must be made to a tax-exempt organization (like Hospice Buffalo) to which a deductible contribution can be made. The provision will be made retroactive to Jan. 1, 2008, and will apply to gifts made from that date through Dec. 31, 2009.

The provision exempts from taxable income any funds transferred ("rolled over") from an Individual Retirement Account (IRA) to a charitable organization. The following limitations apply:

• The donor must be age 70½ or older.
• The cap on annual IRA rollovers is $100,000.
• The contribution must be a direct gift to a charity (no planned/deferred gifts).

Hospice recommends that you always consult with your attorney, financial planner or tax advisor before making a planned gift to Hospice. For more information on this charitable gift option or planned giving opportunities please call the Hospice Foundation at (716) 686-8090.