IRA charitable rollover extension enacted
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 signed into law today by President Obama includes a retroactive extension of the IRA Charitable Rollover for 2010 as well as an extension of the provision for 2011. As a consequence, if you have utilized the IRA Charitable Rollover in prior years or would like to consider making contributions to Federation with this provision, please contact your IRA custodian or professional advisor as soon as possible to alert them regarding your intention to authorize a 2010 distribution.
If you or a loved one own an IRA and are age 70½ or older, you may transfer up to $100,000 directly from your IRA to the Jewish Community Federation's Annual Campaign or to the Federation's Fire Relief Fund for Israel. You may also use your IRA Charitable Rollover as a convenient and effective means to contribute to the Unrestricted Endowment Fund to meet future emergencies, seed new initiatives and provide capital grants to ensure the vitality of the Jewish community for the future, or to support a Community Endowment such as the Early Childhood Education Initiative, Reducing Barriers to Jewish Life, or Community Scholarship Funds.
The new law does not allow contributions to donor advised funds, supporting foundations, private foundations, life income plans and charitable lead trusts. If you have not yet made your required minimum distribution, a 2010 transfer will qualify for the required distribution. Even if you have taken your required IRA distribution, you still may find the IRA Charitable Rollover to be a convenient way to make a year-end gift. Individuals who make charitable transfers from their IRA before February 1, 2011 can treat them as if they were made in 2010, providing additional time for IRA custodians to process charitable transfer requests.
It is important to remember that in order to have a qualified charitable distribution under the IRA Charitable Rollover provisions, the distribution must go directly from the IRA custodian to the Federation.
If you have any questions, please contact: Tamara Wallenstein at 415.512.6217 or tamaraw@sfjcf.org
