Use Your IRA to make a charitable
gift to Boyce Thompson Arboretum!

Did you realize if you are 70 ½ years or older, new legislation allows you to make cash gifts totaling up to $100,000 a year from your IRA to qualified charities like Boyce Thompson Arboretum without incurring income tax on the withdrawal? Now you can make a charitable gift during your lifetime from your retirement assets and not incur income tax penalties. The provision is effective for tax years 2006 and 2007 only.

Charitable IRA Rollover Provision

The Pension Protection Act of 2006 contains a two-year IRA Charitable Rollover provision allowing people age 70 ½ or older to exclude up to $100,000 from their gross income in 2006 and 2007. The gifts are made directly to a qualified charity.

The new provision permits distributions from traditional IRAs or Roth IRAs to qualified public charities and private operating foundations as described in IRC 170 (b)(1)(A). Distributions were previously income taxable, they are now excludable from gross income, eliminating the income tax penalty for such charitable gifts.

The following limitations and restrictions apply:

Who is most likely to benefit?

Consult your legal or tax advisor before making any decision based on the provided information.

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