Tax-Free IRA Rollover Extended To December 31, 2011

President Obama recently signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 which includes an extension of the tax-free IRA rollover provision.  Under this legislation, donors may be able to make outright gifts of up to $100,000 to CBC from their traditional or Roth IRA and have such gifts count toward their minimum distribution requirement. While the donor does not receive an income tax deduction for his or her gift, there is no tax on the charitable transfer.

To benefit from this gift opportunity, the following qualifications must be met:

• Donor must be age 70 1/2 or older at the time of transfer.
• The maximum amount a donor may transfer is $100,000 with respect to each year.
• The gift must be outright. Gifts to donor advised funds or to life income vehicles do not qualify.
• The gift must be transferred directly from the IRA account by the IRA administrator to CBC.

The new law is retroactive to January 1, 2010. Donors who have difficulty making a gift before year-end may be able to treat certain IRA rollover gifts made in January 2011 as if they were made on December 31, 2010, by electing to do so in the time and manner prescribed by the Secretary of the Treasury. Donors who make this election may be able to count their January 2011 gift toward fulfilling their required minimum distribution for 2010.

The attached letter can be used by you to direct your IRA administrator to make a gift to CBC.

If you have any questions about the charitable IRA rollover, or how to make a planned gift to CBC, please do not hesitate to contact contact Peter Durant, at (508) 992-6219 or pdurant@communityboating.org.