NEW IRA TAX BREAK

Currently, anyone who would like to make a gift to the Capital Campaign using an IRA can do so under the following tax free option for 2007:

An IRA owner, age 70 1/2 or over, can directly transfer tax-free up to $100,000 per year to an eligible charitable organization.  This option is available in tax years 2006, 2007, 2008, and 2009.

Eligible IRA owners can take advantage of this provision, regardless of whether they itemize their deductions.  Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension (SEP) plans are not eligible.  To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity.  Amounts so transferred are not taxable and no deduction isavailable for the amount given to the charity.  Transferred amounts are counted in determining whether the owner has met the IRA's required minimum distribution rules.  Where individuals have made nondeductible congtributions to their traditional IRAs, a special rule treats transferred amounts as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the case with regular distributions.

Please speak with your fund advisor or accountant for more information and guidance. This provision may be renewed by Congress.

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