New law creates charitable opportunity

On Dec. 17, new legislation was passed extending the IRA charitable rollover until Dec. 31.  As a result, people aged 70 1/2 and older have a special tax-free opportunity to make the charitable gift of a lifetime.

How the IRA charitable rollover works: If you are at least 70 1/2, the new law allows you to transfer up to $100,000 of your IRA assets for each of 2010 and 2011 directly to a qualified public charity, such as the Community Foundation of the Eastern Shore.

Since the assets you transfer will not be recognized as income, they will not trigger federal income taxes today or estate tax in the future.

If you are married, you and your spouse can each transfer up to $100,000 per year.

At the Community Foundation, you have a number of options for your IRA charitable rollover:

• Through a transfer to our Lower Shore Fund for Community Needs, you can help the foundation address the most critical unmet needs in our community. 
• You can establish or add to a field of interest fund in support of a particular area of interest, such as the arts, education, or the environment. 
• You can establish or add to a designated fund for one or more nonprofits of your choice. 

Please keep in mind you only have until Jan. 31 to make your IRA charitable rollover for 2010. 

For 2011, however, you have until Dec. 31 to accomplish your transfer. Only IRA withdrawals qualify for IRA charitable rollover treatment.

They cannot come from any other type of retirement plan -- nor do they qualify for any additional charitable deduction. IRA charitable rollovers cannot be made to donor advised funds, charitable gift annuities, or charitable remainder trusts, nor do they apply to private foundations and supporting organizations.

To learn more about this and other charitable giving strategies, contact your favorite charity or the Community Foundation of the Eastern Shore at 410-742-9911.