NEWS

GREAT NEWS!!!

The Emergency Economic Stabilization Act of 2008 (the “bailout”) signed into law by President Bush on October 3^rd contains important provisions relating to charitable giving.  The law extends the IRA Rollover that expired last December now through December 2009.  The law provides that, in each of the years 2008 and 2009, an owner of a traditional or Roth IRA may instruct the trustee to distribute directly to a public charity up to $100,000 without the distribution being included in taxable income, and that distribution will count toward the IRA owner’s mandatory withdrawal amount. Now is the time to consider taking advantage of this opportunity while assisting RTS. 

Individuals at least 70 1/2 years old are allowed to make tax-free gifts directly to qualified charities like Reformed Theological Seminary.  Here's how:

— Individuals aged 70 ½ and older may transfer up to $100,000 per year directly from an IRA to the Seminary.  You must direct the IRA manager to transfer funds directly to RTS.

— The charitable distribution counts toward Minimum Required Distribution requirements.

— Charitable distributions may be made in addition to any other charitable giving you may have planned.

— Because the distribution generates neither taxable income nor a tax deduction, even non-itemizers can benefit.

In other words, donors who make charitable gifts directly from their IRAs escape the income tax they would normally have to pay on the withdrawal.  You will find this opportunity to be particularly beneficial if you are required to take unneeded IRA withdrawals or have experienced limitations on tax benefits in the past.

If you are interested in discussing your options under this unique provision, please call Robert Bridges at 866-926-4RTS or email rbridges@rtsfoundation.org. We have clearly written instructions and letters you can use to take advantage of this opportunity before time runs out.  We would even be happy to assist you in working with your IRA custodian.  As always, we recommend you seek the advice of your tax and/or legal counsel before deciding on a course of action.