IRA Charitable Rollover

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In December 2010 President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. In addition to a wide range of income and estate tax changes, the act extended the IRA Charitable Rollover for the entire year of 2011. The IRA Charitable Rollover was first included in law by President Bush at the end of 2006, and has been temporarily renewed multiple times since then.

An IRA Charitable Rollover permits the owner of an IRA who is 70.5 years old or older to transfer up to $100,000 directly from the IRA to a qualified charitable organization such as the World Mission Prayer League. The transfer counts toward the minimum required distribution for the year, which may reduce the owner’s income tax liability for the year.

Here are some things you should know about the IRA Charitable Rollover:

  • You must be 70.5 years old or older to qualify
  • A maximum of $100,000 can be given in 2011.
  • Transfers must be made directly from the IRA to the charity; only the IRA trustee or custodian can transfer the gift. A donor should not withdraw the funds and then contribute them to charity.
  • Transferring funds from your IRA counts toward your required minimum distribution for the year, but does not count as income to your thereby reducing your tax liability at the end of the year. For that reason this contribution does not qualify as a charitable deduction.
  • Only qualified charities are eligible; WMPL is a qualified charity. The gifts must be given directly to the organization and cannot be used to fund life income gifts such as charitable remainder trusts or gift annuities.
If you think you might want to make this sort of contribution, you should first talk to your tax advisor to make sure that this sort of donation is appropriate for you. The best way to start an IRA Charitable Rollover is to inform your IRA custodian of your intent by email. We can provide you with a sample email or letter to send to your IRA custodian.
It is also important to inform our office of your intent to make this contribution so that we can properly receive and receipt the donation. Please contact Jeff Dahl at 612.871.6843 or jdahl@wmpl.org if you have any questions regarding the IRA Charitable Rollover

 

Financial Update

At the end of August we did not provide full allowances to all of our missionaries. After designated support funds were used up, we needed an additional $66,016 to meet full allowances. We used the entire general fund balance of $43.894 and an additional $6,622 from estate funds to bring minimum allowance payments up to 65 percent of the target amount.  Of our 49 missionary units, 17 received full allowance and 29 received the minimum amount.

Thank you for your faith prayers and support!

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