Charitable IRA Distributions

The Charitable IRA Distribution is Back!

The new tax laws authorized in December 2010 reinstituted the option to make a distribution to charity from your IRA - entirely tax-free. Here's an opportunity to support Olbrich and save taxes!

The charitable IRA distribution, which allows taxpayers who are 70 1/2 or older to make tax-free distributions of up to $100,000 per year from a Traditional IRA or Roth IRA directly to charity, was originally effective for 2006 and 2007 and then twice extended through 2009. However, it was allowed to expire on January 1, 2010 and had not been available since.

The new law extends the charitable IRA distribution for two years, retroactive to January 1, 2010 (that is, through 2011). Recognizing that there is little time left to take advantage of this extension in 2010, the new law allows donors to elect to treat IRA distributions made in January 2011 as if they were made on December 31, 2010. Taxpayers who make this election get to count their gift against the $100,000 limitation on such gifts in 2010 instead of against the 2011 limitation. They may also count their gift toward fulfilling their required minimum distribution for 2010.

Here are the basic rules governing charitable distributions:

• You must be 70 1/2 years of age.
• Tax benefits apply for gifts up to $100,000 per person per year.
• You can make these IRA charitable distributions in 2010 and 2011.
• Gifts made in January 2011 may be credited to 2010 or 2011.
• You must instruct your IRA Account Administrator to make the distribution directly to charity.
• Only outright charitable gifts can be made (not life-income gifts such as charitable gift annuities).
• You can use your IRA charitable distribution to make your annual gift, satisfy your current pledge.
• Your gift must be made to a public charity such as Olbrich Botanical Society (not to donor-advised funds or private foundations).

Here's How to Make Your Charitable IRA Distribution to Olbrich

• Instruct your IRA administrator to make a direct distribution to Olbrich Botanical Society.

• Instruct the administrator to send the distribution check to the following address:

  Olbrich Botanical Society

3330 Atwood Avenue

Madison, WI  53704

• Instruct the administrator to identify you as the IRA account owner/donor by name and address on its cover letter.