Regardless of how you feel about the recently signed $700 billion economic bailout, it did include a provision that impacts charitable giving. A two-year extension of the IRA charitable rollover, retroactive to January 1, 2008, was included in the legislation.

The IRA charitable rollover was created as part of the Pension Protection Act of 2006 and allowed individuals to “rollover” charitable gifts directly from a traditional or Roth IRA without incurring federal income taxes. The original provision expired on December 31, 2007.

Donors age 70½ or older can “rollover” a gift directly to charitable organizations (planned gifts that generate future income are disallowed). Gifts are capped at $100,000 annually (or less, of course), but the extension exempts these gifts from federal taxes if made between January 1, 2008 and December 31, 2009.

If you think an IRA charitable rollover might work for you, contact John Crabtree at 402.687.2103 x 1010 or johnc@cfra.org.