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Encore! The Charitable IRA Rollover is Back
Congress recently extended an excellent charitable planning opportunity for 2008 and 2009 tax years. The Tax Extenders and Alternative Minimum Tax Relief Act of 2008 permits individuals to distribute up to $100,000 from an individual retirement account (IRA) directly to a qualifying charity without recognizing the transfer as income. This distribution also counts toward the mandatory IRA distribution for individuals who are 70½.
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The distribution must be made to a "public charity" (such as the Foundation at NJIT) but may not be made to a supporting organization or to a donor-advised fund. The distribution must be made directly to the charity by the IRA administrator.
Who should consider utilizing this benefit?
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Donors who are taking mandatory IRA distributions and do not need the income but would like to make contributions to charity. |
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Donors who take the standard deduction. |
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Donors who annually give more than 50 percent of their income to charity or who exceed the percentage income limitation for gifts. |
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Donors with AGI exceeding $150,000 (for a couple) and who are subject to the itemized deduction reduction. |
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Donors who may consider leaving the remainder of an IRA to charity or making a bequest from an IRA who may prefer to see the gift made during their life. |
How can the Foundation at NJIT help?
The Foundation at NJIT can accommodate an IRA Charitable Gift for a variety of different purposes.
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Endowed and Annual Scholarship Funds for more information visit here. |
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Annual Fund for additional information visit here. |
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Colleges, schools and programs of interest at NJIT for more information visit here. |
An IRA Gift can also be used to satisfy an existing pledge to the university.
For your convenience, our office of Gift Planning has prepared a letter of instruction for you to send to your IRA Administrator. If you wish to receive a copy of this letter, please call or email Tia J. Graham, JD, Assistant Vice President of Planned Giving, directly at (973) 596-8548 or graham@njit.edu. We look forward to hearing from you and answering any questions you may have about this exciting giving opportunity.
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