SUPPORT PRECEPT

IRA Rollover

IRA Charitable Rollover giving opportunity is about to expire!

 

Thank you for your partnership with Precept Ministries International. The financial commitment of friends like you enables us to boldly look ahead as we seek to serve our Lord. Because of your faithful support, we want to alert you to legislation that could impact your tax burden and charitable giving for the remainder of 2009.

The Emergency Economic Stabilization Act of 2008, signed into law by President Bush on October 3, 2008, included an extension of the IRA Charitable Rollover. You may have taken advantage of this giving opportunity in the past, or you may be eligible to take advantage of it now, so we want to let you know that the extension of the legislation will expire on December 31, 2009.

An excellent charitable planning and giving opportunity, this act permits an IRA owner age 70 ½ or older to make a direct transfer to charity without the distribution being included in taxable income. The transfer, which will count towards the IRA owners mandatory withdrawal amount (or minimum required distribution), and may be up to $100,000 in one year.

Mary recently turned 70 ½ and has $75,000 in her IRA. She is going to give $1,000 to charity this December and appreciates the fact that she can make her planned gift and have it count towards her minimum required distribution. Don, age 77, has $500,000 in his IRA and has a minimum required distribution. He does not want to recognize the withdrawal as taxable income and he wants to give this money to charity. Don can do both under this plan. Paul and Betty are in their 80s and have been blessed financially by the Lord. Their combined IRA asset is $1,500,000. Their combined income and estate tax this year will incur a tax based on a percentage of their assets, and they want to be able to decrease that tax burden and bless others at the same time. They each want to gift $100,000 from their respective IRA’s. This IRA plan will accomplish both goals.

To qualify for this tax incentive:

• The owner of the IRA account must be at least 70 ½ years of age when the distribution is made.
• The 2009 gift must be completed before December 31, 2009
• The charitable distribution may be in any amount up to $100,000
• Gifts must be outright; rollovers to a planned gift such as a gift annuity or a charitable remainder trust do not quality
• The IRA owner must direct the IRA manager to transfer funds directly from the IRA to Precept Ministries (NOTE: because the distribution is made directly from the IRA to PMI, the gift does not incur federal or state income taxes; therefore you do not receive a charitable deduction since the assets were never taxed.

To support Precept Ministries International with a gift from you IRA, follow these very easy steps.

• Check with your financial advisors to make sure you can take advantage of this giving opportunity.
• Use the document IRA Charitable Distribution – Letter to Administrator and add your personal information (i.e., IRA owner’s name, IRA account number, amount, 2009, etc.)
• Send the letter to your IRA plan administrator. Don’t forget – gifts must be transferred by December 31, 2009, so be sure to give your IRA plan administrator plenty of time to take care of the transfer.
• Please let PMI know that you’ve made a gift by completing and sending us the IRA Charitable Distribution – Letter to PMI. This will help us follow up with the necessary paperwork that you will need to file with your taxes.

To take advantage of this giving opportunity you must act now!

Please call Stan Latham, Vice President Stewardship Development at 423.296.8694 to take advantage of this opportunity today!

IRA Charitable Distribution – Letter to Administrator

IRA Charitable Distribution – Letter to PMI

 

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