Gifts from IRA (Individual Retirement Account) Funds
Thanks to the Pension Protection Act of 2006, IRA Owners who are 70 1/2 or older now have a new way to make a gift. This temporary tax incentive applies through the end of 2007 and allows an individual to make a lifetime charitable gift free of tax obligations. Distributions made from taxable funds in an IRA or ROTH IRA will not be taxable. This provision allows individuals to contribute some of their IRA funds to the Fairfax Library Foundation or other charity during their lifetime without having to add the distribution amount to their income, which lowers the adjusted gross income.
Under this new law, you may contribute funds from your IRA if:
- You are age 70½ or older
- The gift(s) do not total more than $100,000 annually
- The gift is made on or before December 31, 2007
- Funds are transferred directly from an IRA or Rollover IRA
- Gifts are made to a qualified charity, such as the Fairfax Library Foundation
To donate a gift from your Individual Retirement Account, contact your IRA custodian for the necessary forms to transfer your desired gift amount to the Fairfax Library Foundation.