Congress extends $100K tax-free IRA rollover; donors can transfer funds directly to Jewish Federation

The Tax Extension package passed by Congress Dec. 16 includes a retroactive extension of the IRA Charitable Rollover for 2010 as well as an extension of the provision for 2011.

This is an opportunity for donors 70½ or older to gift $100,000 tax free from an IRA directly to Jewish Federation through the Jewish Community Foundation (JCF). But donors must make the transfer before Feb. 1, 2011, to take advantage of the 2010 provision.

“Jewish Federation is in need of cash right now so this is a fabulous way to help our community,” said Wendy Rosenblum, Federation assistant director of development who manages the operation of the JCF. “An IRA can be used to make a gift to the Annual Community Campaign to help Jewish Federation’s cash flow. Or, the gift can be used to establish an endowment to perpetuate an annual gift to the Jewish Community Campaign, or support an agency, program or area of interest,” Rosenblum explained. Donor advised funds, supporting organizations and private foundations are not qualified charities for purposes of the IRA rollover.

Donors are encouraged to seek the advice of a professional advisor before making a charitable IRA rollover gift. Remember, in order to have a qualified charitable distribution under the IRA Charitable Rollover provisions, the distribution must go directly from the owner of the IRA to the charity.

For more details, contact Wendy Rosenblum at 314-442-3816 or 314-442-3740 or email [email protected].