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The Pension Protection Act IRA Charitable Rollover.

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Presentation on theme: "The Pension Protection Act IRA Charitable Rollover."— Presentation transcript:

1 The Pension Protection Act IRA Charitable Rollover

2 PPA began in and has been extended through 2012! It is potentially the most favorable charitable legislation in many years! The charitable legislation includes both incentives and reforms. The charitable incentives open up power for a potential $1 Billion plus in new charitable giving from IRAs. These gift opportunities are be for current individuals age 70 ½ and above.

3 Five general categories for current IRA GIFTS 1.Convenience Donor - who simply find it and easy method for an end of the year gift. 2.Generous Donor- who wants to give past the 50%. 3.Major Donor –Ministry Friends of OBHC who look at favorable opportunity to make a major gift. 4.Standard Deduction Donor- will benefit from a direct IRA to charity gift to OBHC. 5.Social Security Donor- may also benefit from IRA gifts.

4 IRA Gift Requirements 1.The IRA gift must otherwise have been ordinary income to the IRA owner. 2.The IRA owner must be 70 1/2 or older. 3.The gift must be to a exempt public charity. 4.It may not be a private foundation, supporting organization or donor advised fund. You should transfer funds directly from an IRA or Rollover IRA outright to one or more public charities. 5.You make the gift on or before Dec. 31, The gift is $100, or less each year.

5 How the IRA LAW WORKS! George, 75 years old, has $500, in an IRA and has decided to gift $85, this year to OBHC. If George gifts $85, from the IRA, He will avoid paying income tax on that amount. He cannot, however, claim a charitable deduction – it is a pure washout. George has found an easy way to benefit OBHC without tax complications.

6 How it works………continued If he desired, George could give more than $100, The legislation allows a maximum $100, gift in both the 2011 and 2012 tax years. So George could give $100, each year. If his spouse has an IRA and is 70 ½ or older, she can also give up to $100, each year.

7 Oklahoma Givers Ranked 2 nd Nationally The 2nd generous state nationally gives 1.05% of their assets to charities of choice. This IRA Charitable Pension Act is an awesome opportunity for generous givers to give more to OBHC.


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