Making the Gift of a Lifetime:

Turning Retirement Accounts into Charitable Good

The Pension Protection Act of 2006 includes a charitable incentive allowing American seniors to make the gift of a lifetime by giving their individual retirement accounts (IRAs) to charity, tax-free.

In 2007, people age 70 1/2 and older can transfer up to $100,000 per year from IRAs to charity without incurring federal income taxes today or estate and income taxes in the future. If married, each spouse can transfer up to $100,000 from his or her IRA.

The opportunity for a $100,000 tax-free transfer expires December 31, 2007.

20% Iowa state tax credit available
Those who make IRA charitable rollovers to community foundations that meet national standards—like the Community Foundation of Waterloo/Cedar Falls and Northeast Iowa—receive not only a tax-free transfer, but are also eligible for a 20% Iowa state tax credit. The gift must be made to a permanently endowed fund to be eligible for the tax credit.

We realize that you consider many factors as you make significant financial, estate and charitable decisions. Because this is only for a limited time, now is the ideal time to bring the IRA opportunity into wealth management discussions.

For more information, you can download the following resources:

Charitable IRA Checklist	Tools for Giving	Ideas for Giving
charts a client’s charitable and estate goals relative to this new opportunity	explains advantages of transferring IRA assets to set up a special fund at the Community Foundation	tells two donor scenarios to show how personal charitable goals can be fulfilled

The Community Foundation of Waterloo/Cedar Falls and Northeast Iowa can partner with you to help fulfill your personal, financial and charitable wishes. To learn more, contact the Community Foundation today at (319) 287-9106.