IRA Charitable Contribution Extended for 2008 & 2009

The IRA charitable contribution provision from prior years has been extended.  Thanks to the recently passed Emergency Economic Stabilization Act of 2008, in 2008 and 2009, you can contribute up to $100,000 from your IRA to charity.  

Requirements:

• You must be at least 70 ½ and your contribution must go to a public charity (but not a private foundation, supporting organization or donor-advised fund).
   
• The contribution must go directly from the IRA to the charity, by a check payable to the charity or other direct transfer.
     
• It counts toward your IRA’s “required minimum distribution” for the year but is not included in your taxable income for federal income tax, which also means you do not get a charitable deduction for the contribution.

If you choose to take advantage of this tax benefit, the gift must be fully tax deductible, which means it cannot be used to pay for your table at the annual fundraiser.  Be sure to get an acknowledgment from the charity which states that the contribution is fully tax deductible.

Thank you for reading this issue of the Cox & Nici E-News.  Please visit our website or call us for more information regarding this subject or to answer any other questions you may have.

Sincerely,