IRA Rollover Returns

published December 20th, 2010

Foundation, nonprofit leaders and donors in Michigan and throughout the nation are applauding President Obama’s signing of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which includes a reinstatement of the popular IRA Charitable Rollover and other charitable giving incentives through the end of 2011.

The first IRA Charitable Rollover was first enacted in 2006 and expired on December 31, 2009. The provision allowed individuals aged 70½ and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) to public charities without having to count the distributions as taxable income.

Last week’s vote means individuals can once again make a gift from their IRA and still claim it as a deduction for 2010, even if they make the contribution January 31, 2011. Since the provision was first enacted, Americans have made millions of dollars in new contributions to nonprofits - including social service programs, religious organizations, arts and cultural institutions, schools and health care providers - that benefit people every day.

Marilyn Zack, vice president for development at Grand Rapids Community Foundation called the reinstatement of the IRA Charitable Rollover, “great news for our donors and the causes they care about.”

The last time the IRA Charitable Rollover was available, a number of Community Foundation donors took advantage of the opportunity. “It is an easy way for people to make a gift of lasting impact; and the gift doesn’t have to be the maximum amount of $100,000. We are happy to work with a donor on a gift of any size,” said Zack.

For more information call one of the Community Foundation development team members—Marilyn, Jonse or Gina—at 616.454.1751.

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