2011 Tax Alert

Posted on December 9, 2011

The end of the year means many things including Chanukah, spending time with family and reflecting on your achievements and how the world has changed this year. This year, there is a new way to show your support for Areyvut. Tax-free distributions can be made from individual retirement plans for a charitable purpose. This “Charitable IRS Rollover”, permits taxpayers age 70 1/2 or older to make tax-free distributions to Areyvut from any Individual Retirement Account (IRA) of up to $100,000 per taxpayer, per tax year. For questions or advice please contact your accountant or tax advisor.

How does this work?

1. The gift can be any amount, up to a maximum of $100,000 per year.
2. The gift needs to be an outright gift (as opposed to a planned or deferred gift).
3. The donor cannot receive a benefit in exchange for the gift.
4. The donor must be 70.5 years old.
5. The gift needs to be from a traditional or Roth IRA.
6. The amount you give must be otherwise taxable if distributed directly to you.
7. You need to make your gift before December 31, 2011, when the law is set to expire.
8. You need to make the gift directly to Areyvut by instructing your IRA trustee or custodian to distribute the funds directly to Areyvut.

For any questions or more information about donating to Areyvut and how your support impacts participants, communities and agencies please contact me at 201-244-6702 or via e-mail at [email protected]. If you do not qualify for this tax incentive but are still interested in supporting Jewish education and service you can contribute through our website. Thanks in advance for your consideration!