Planned Gifts

IRA Gifts Under the Pension Protection Act

The tax code provision allowing the tax free transfer directly from IRAs to charities expired on December 31, 2007.  It is anticipated that Congress will extend this provision shortly.

Good News from Washington
Charitable Treasure Buried in Massive Pension Legislation

It took nearly a decade, but Congress has finally enacted legislation as part of the Pension Protection Act of 2006 (PPA 2006), which offers charitably minded individuals a golden opportunity to make gifts from their IRAs and exclude the amount of their gifts from gross income. To qualify:

This opportunity is available only for 2006 and 2007, and no charitable income-tax deduction is allowed. 

Individuals withdrawing $100,000 from their IRAs and contributing it to charity would have had to include the $100,000 in their income and would have been allowed a federal charitable income-tax deduction of up to $100,000 (subject to limits of deductibility) to offset the inclusion. Ostensibly, the net result was zero tax implication—a “wash” for all practical purposes. But for those taxpayers unable to use some or all of the charitable deduction, the new law presents a significant opportunity.

So, who benefits from the Pension Protection Act of 2006?

The new law presents a wonderful opportunity until the end of 2007 for individuals to utilize their IRAs creatively to accomplish special philanthropic objectives.

Please call if you have questions or if we can assist you in any way.

Planned Giving Officers:
George Cawthon         Dan Ott
Doug Medlin
Phone: (352) 392-5512
Toll-free: (866) 317-4143
Fax: (352) 392-8736
www.uff.ufl.edu

If you decide to make a gift under the Pension Protection Act, the first step will be to direct your IRA plan trustee/ administrator to make a distribution to the University of Florida Foundation.  A form letter that may be used for that purpose is available online: PDF | MS Word

You should also contact us and let us know that we will be receiving a gift.  A form letter for that purpose is also online: PDF | MS Word.

 

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