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University of Massachusetts Lowell
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IRA LAW PERMITS TAX-FREE DISTRIBUTION TO THE UNIVERSITY OF MASSACHUSETTS
AN IMPORTANT GIFT OPPORTUNITY FOR DONORS AGE 701/2 OR OLDER
Donors who are age 701/2 or older can now make gifts to the University of Massachusetts and other charities directly from their IRAs, without including the IRA withdrawal in their taxable income. This provision, available now through December 31, 2009, was passed into law as part of the Emergency Economic Stabilization Act of 2008.
Do you have a large IRA account?
This is a great opportunity to make a charitable gift in 2008 or 2009 without incurring additional income tax.
Are you unable to itemize your deductions for income tax purposes?
By taking advantage of this temporary IRA provision, you can transfer funds directly from your IRA to a charity with no income tax liability, thus eliminating the taxes you would otherwise pay.
Is the required Minimum Distribution from your IRA more income than you currently need?
Consider transferring the remaining distribution to charity. Why? You can still meet your Minimum Distribution Requirement by taking only the portion of the distribution you need for income, and then transferring the remainder of the distribution to the charity of your choice.
Have you made a lot of charitable gifts this year and have bumped into the 50% ceiling in your adjusted gross income?
You can now make gifts directly from your IRA that will not be subject to this limitation and won't be taxed as a distribution.
The University of Massachusetts provides the following downloadable PDF documents for more information and to help you decide whether this type of gift is right for you:
Fact Sheet on IRA Provisions
Comparison of IRA Gift vs. Regular IRA Withdrawal
Sample Letters for Qualified IRA gifts to the University of Massachusetts
If you have questions, please call Carolyn J. Flynn, Assistant Vice Chancellor for Planned Giving at 617-287-5336 or email carolyn.flynn@umb.edu.
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