Contributions
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YOUR YEAR-END FINANCIAL PLANNING
CAN BENEFIT
IRA Rules Change and Appreciated Stocks Offer Tax Benefit
December is traditionally a manic month for tax and estate planning. This year there are two opportunities to both save taxes and contribute to your parish. First is a recently passed law – during 2007– which permits parishioners to make IRA-funded charitable gifts to
St. Patrick’s while still living. In the past, if donors wanted to use IRA funds before death, our friends in
70 ½ years old or older to instruct their IRA trustee to transfer up to $100,000 from their IRA directly to St. Patrick’s with no strings attached. This opportunity is only available thru
There are four major advantages to the new law:
· First, the amount transferred does not increase the donor’s adjusted taxable gross income.
· Second, non-itemizers who are not eligible for income tax deductions, still receive the benefit of not triggering a taxable IRA distribution.
· Third, these IRA contributions count towards a donor’s mandatory annual distribution. (Thus, instead of taking a mandatory IRA distribution you do not need, you can instruct your IRA trustee to send those funds to St. Patrick’s instead).
· Lastly, the “ceilings” on the percentage of your adjusted gross income you can claim as a charitable deduction do not apply to these transfers.
Please also remember that appreciated stock is always an effective way to contribute to your parish. Charitable donations made on or before December 31st can be deducted from your 2007 tax return. Gifts of stock and other securities held longer than one year can be deducted at their full fair market value, not just the amount you paid. For some, this can result in considerable tax savings.
If you have any questions or would like to make an IRA or stock donation to St. Patrick’s, please call the McNulty Ministry Office at 847-234-1401 for more details and information.