YOU CAN ONCE AGAIN GIVE IRA ASSETS TO DAVIDSON

The Economic Stabilization Act of 2008 has renewed the “charitable IRA rollover.”

WHAT HASN’T CHANGED: Whatever your age, you can still designate Davidson as the beneficiary of all or part of your IRA at your death, creating an estate tax deduction and avoiding the income tax which would be payable by a non-charitable beneficiary of the IRA. This designation can be done by a simple communication with your IRA custodian, probably doesn’t involve changing your will, and is a good option for anyone considering a bequest to Davidson.

WHAT’S BACK: You can again give up to $100,000 per year from a traditional or Roth IRA account without having the donated amount count as taxable income, IF:

•  You are over the age of 70½ at the time of your contribution, and
• Your IRA custodian transfers the funds directly to Davidson, not to you, and
• Your gift is completed before December 31, 2009.

The law does not allow:

• An income tax deduction for these gifts;
• Using these IRA withdrawals to fund any arrangement which returns a benefit to you, such as a charitable remainder trust, or a gift annuity;
• Directing these gifts to “supporting organizations” or donor-advised funds;
• Gifts from other sorts of retirement accounts, such as Simple IRA, 401(k), 403(b) or Keogh plans.

Visit our Frequently Asked Questions About IRA Gifts page for additional information.