Once again, the IRA charitable rollover provision has been extended.

A fabulous tax saving opportunity is available to you. If you are 70½ or older (or know someone who is) the new IRA Rollover Provision permits you to make a contribution of up to $100,000 to the Jewish Federation.

This provision avoids the normal income tax on such distributions. Amounts paid directly to a qualifying charity* from a donor's IRA may be counted toward the donor's minimum distribution requirement from the donor's IRA.  The charitable contribution is tax-neutral -- it will not be included in the taxpayer's income and it will not be deductible; however, it will reduce the amount of income otherwise to be reported which can involve various deductions.

The IRS requires that annual IRA distributions be taken, with the amount depending upon your age. For instance, at age 70, the amount required to be taken out is 3.65% and at age 90 it is 8.77%.

You can donate your mandatory IRA distribution to the Jewish Federation to reduce your taxable income!  It's a win-win –you will have a positive impact for yourself and for the Jewish Federation.

The IRA Rollover Provision is an ideal charitable opportunity if, for example:

• You don't need the extra (taxable) income from the minimum distribution;
• You take the maximum charitable deduction (50% of AGI) in any year; and/or,
• You're subject to the 2% rule (itemized deductions are reduced by 2% of AGI in excess of $150,500 this year).

Don't delay, talk with your financial advisor about this incredible opportunity.

For more information,
please contact Donna Albertario at 203-267-3177, ext. 309 or email at dalbertario@jfed.net.

*Rollover gifts may not be used to establish gift annuities or charitable remainder trusts or be contributed to donor advised funds, supporting foundations or private foundations.