President Bush signed into law a tax incentive on August 17, 2006 for charitable gifts from donors 70-1/2 years or older. The Pension Protection Act of 2006 encourages financial support of charitable organizations across the United States.
Under the law, a lifetime gift using funds from your Individual Retirement Account (IRA) can be made without undesirable tax effects. Previously you would have had to report any amount taken from your IRA as taxable income, then take a charitable deduction for the gift, but only up to 50% of your adjusted gross income. In effect, this caused some donors to pay more in income taxes than if they didn’t make a gift at all.
Fortunately, now these IRA gifts can be accomplished simply and without tax complications, plus you can make the gift now while you are living and able to see the benefits of your generosity.
You May Contribute Funds This Way If:
- You are age 71-1/2 or older.
- The gift is $100,000.00 or less each year.
- You transfer the gift outright to one or more public charities, but not supporting the organizations or donor advised funds.
- You transfer funds directly from an IRA or Rollover IRA.
- You cannot receive benefits from us in exchange for the gift.
How To Make Your Donation
Pocahontas Community Healthcare Foundation is a non-profit organization eligible for donations. You may contact your IRA agent to transfer your desired amount. A gift given to the Pocahontas Community Healthcare Foundation is matched by Medicare reimbursements at a rate of 50%.