Charitable IRA Rollover Gifts – A Special Gift Opportunity

A provision under the Emergency Economic Stabilization Act of 2008, continues what was established with the Pension Protection Act of 2006. This allows individuals to make charitable contributions directly out of their Roth IRA or individual retirement accounts for the 2008 and 2009 calendar years.

If you are over age 70½, the federal government permits you to contribute directly to a charitable organization from your IRA account (up to $100,000.00) without incurring additional income tax or penalties on the contributed amount.  This can be for amounts that are either withdrawn under a voluntary or mandatory withdrawal manner.

This is a simple and easy way to contribute to Brophy and is a special opportunity for you with a positive tax consequence.  If your IRA has increased in value over the years you may be in a situation where the required minimum distribution is actually more income than you need.  The IRA rollover gift allows you to help a charitable organization while not increasing your taxable income.

If you are interested in donating to Brophy through this special way, check with your financial advisor to determine if an amount is correct for you and request that an amount be transferred to Brophy College Preparatory.  It really is that easy.

The following are the requirements for making such a donation:

• You must be 70 ½ or older
• This offer applies to only those individuals who have traditional IRAs or Roth IRAs and not to other retirement plans such as 401(k) plans
• The law required that the rollovers be made directly by the IRA custodian to the qualified charity therefore it does not apply to distributions from an IRA to an individual, who then writes a personal check to the charity.
• No charitable income tax deduction is allowed since no income is reported

We advise you to talk with your financial advisor to see if this method of make a donation is appropriate for you.  We also would appreciate your sharing this information with other family members or friends who may qualify and have an interest in helping Brophy continue its mission of educating Men for Others.

If you have any questions please contact Joe Helm at 602-264-5291, ext 6430, or jhelm@brophyprep.org.