Making a gift through your IRA
The IRA charitable rollover is back!

The IRA Charitable Rollover has been extended for 2011. This incentive allows you to transfer up to $100,000 from your IRA without having to recognize the transfer as income.

Who is eligible: Persons 70.5 and older with Traditional or Roth IRAs. This excludes 401(k) and 403(b) plans and other tax-deferred accounts.

When: Tax year 2011. Transactions must be completed prior to December 31, 2011, in order to qualify.

Amount: Up to $100,000 a year. Couples with separate IRAs are eligible to individually give up to that amount in one year.

Why? Your donation to Jefferson improves the health of our community while setting the standard for excellence in patient care. With your gift, Thomas Jefferson University Hospital is better able to provide exemplary clinical settings for educating the healthcare professionals of tomorrow. With your support, we continue to lead advancements for healthcare delivery and quality improvement.

How: Gifts must be made directly to Jefferson and must be outright. You cannot, for example, roll this into another charitable gift such as an annuity. IRA gifts may not be given to donor-advised funds or private foundations. Gifts must be distributed directly to Jefferson from your IRA, not cashed out and then sent in. Please consult your financial advisor.

State tax impact: There are at least three different categories of states with respect to the charitable IRA rollover. First, some states do not presently provide for charitable income-tax deductions. In Indiana, Michigan, New Jersey, Ohio, Massachusetts and West Virginia, there are no state charitable itemized deductions. Therefore, donors will benefit from the IRA rollover by reducing their state taxable income and reducing their state taxes. Both these donors and the federal nonitemizer donors will benefit directly by making charitable gifts from their IRAs. Second, some states permit charitable deductions but use the federal adjusted gross income as an initial reference number for determining state tax. In this circumstance, the reduced adjusted gross income as a result of the charitable IRA rollover will also reduce state taxes. Finally, there may be some states that do not recognize the IRA charitable rollover and require IRA reporting for state income-tax purposes. In those states, the distribution to charity would normally be deductible on state income tax returns but may be subject to state limits, such as the 50 percent of adjusted gross income limit for charitable gifts in one year.

For more information on making a gift through your IRA, contact:

Fritz Ruccius, Chief Development Officer, The Jefferson Foundation
(215) 955-8733



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