Many Can Now Benefit from New IRA Rollover Legislation

On August 17, 2006, President Bush signed into law pension reform that could benefit many¹ with Individual Retirement Accounts (IRAs). It affects those aged 70-1/2 and older who are required to take annual withdrawals from their traditional IRAs or Roth IRAs. The legislation does not include 401(k), 403(b), SEP-IRA, or Simple IRA plans. Congress now gives the option of donating such funds directly to registered charities without the normal tax consequences--up to $100,000 in 2006 and 2007.

Since retirement assets like IRAs are the most highly taxed portion of one's estate--up to 70 percent--you may find it advantageous to move these assets out of your estate now; but please consult with your financial advisors before doing so. This new legislation provides an ideal alternative for IRA funds that are not currently needed, that will be taxed either now or later, and could be used for good charitable purposes today, such as helping to spread the gospel through the "JESUS" film.

1The following are examples of people who could potentially benefit2 from this legislation: 1. An individual looking for a simple and easy way to make a donation, especially at the end of the year.   2. An individual who takes the standard deduction on their federal income tax return.3   3. An individual who is a Social Security recipient.   4. An individual considering a major gift, but waiting for a favorable opportunity to do so.   5. A generous individual who wants to give beyond the 50 percent adjusted gross income limitation. 2Consult your tax advisor before making such a decision; each individual’s situation is unique. 3Also, check with your advisor regarding possible state tax implications.

By rolling over or donating IRA funds to a ministry, the holder can bypass the taxes, and know that their good stewardship is helping to change lives now and for eternity.The process is as simple as making a routine stock gift donation.  You just instruct your IRA administrator to make a distribution to the charity (or charities) of your choice. For IRA gifts toThe JESUS Film Project and Campus Crusade for Christ, please use the IRA Rollover Gift Notification form to let us know that you are making such a gift. Click here now for this printable IRA notification form and fax cover sheet.