If you are 70½ or older, you are required to make minimum withdrawals from your retirement plans each year according to a federal formula. If you do not need these withdrawals for personal use, this is a great way to make a gift to Planned Parenthood Federation of America (PPFA). While you are not entitled to an income tax charitable deduction for the gift, the IRA charitable rollover will count towards your minimum required distributions for the year and you will not have to pay federal income tax on the withdrawn amount.
The rules for making a gift from your IRA:
• You must be 70½ or older at the time of the transfer and can give up to $100,000 (aggregate total) each year.
• If you and your spouse have individual accounts, you can each give from your accounts; doubling your family's possible gifts up to $200,000.
• Your gift must be made directly from the custodian of your IRA to PPFA. If you have retirement assets in a 401(k) or 403(b) you must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the fund from the IRA directly to PPFA.
• Your gift counts towards your required minimum distribution.
• You will not pay federal income taxes on the withdrawal for the gift, so you cannot claim an income tax charitable deduction.
• To allow taxpayers to benefit from the law for 2010, Congress extended the deadline for 2010 gifts to January 31, 2011. Your IRA plan provider must make the transfer to PPFA on or before January 31, 2011 (for a 2010 gift) or December 31, 2011 (for a 2011 gift).
Please instruct your IRA plan provider to make a direct transfer from your traditional IRA or Roth IRA to:
Planned Parenthood Federation of America
Attn.: Office of Gift Planning
434 West 33rd Street
New York, NY 10001
Tax I.D.: 13-1644147
Certain states may not exclude gift amounts withdrawn from an IRA for state income tax purposes. When planning your gift, please be sure to check with your plan provider or tax preparer on whether your state of residence will tax your intended charitable distribution.
For more information, please contact us at 800-319-7564 or firstname.lastname@example.org.