IRA Rollover Gifts

Hold the presses .... The Emergency Economic Stabilization Act of 2008,
passed October 3, 2008 includes a charitable giving provision that permits tax-free distributions from IRAs (known as the charitable IRA rollover) until December 31, 2009.

This is a retroactive extension of a tax law provision that had expired. Many Mount alumni and friends have found this a sensible option for making a gift to Mount St. Mary’s. This provision provides an exclusion from gross income for certain distributions of up to $100,000 from an individual retirement ac­count (traditional or Roth), which would otherwise be considered taxable income. To qualify, the chair­table gift must be made to a tax-exempt organiza­tion like Mount St. Mary’s University.

If you have saved tax-deferred income in an IRA and must begin taking required minimum distributions from that account(s) at age 70^1⁄2, you will pay income tax on that amount. By making a gift to charity from your IRA in an amount equal to or more than the required minimum distribution for that year, you can accomplish your charitable goals and reduce your tax liability.

Please note the following requirements:

• You must be 70^1⁄2 years of age.

• Tax benefits apply to gifts up to $100,000 for tax-year 2008.

• The amount must be in the form of an outright gift.

You can download form letters and instructions to account holders below:

Sample letter to Plan Administrator

Sample letter to Mount St. Mary's University 

For more information: Contact: Frank Sneeringer • Executive Director of Development • sneeringer@msmary.edu • 301-447-5961.     

Or Visit our IRA Rollover frequently asked questions (FAQ) page.