New 2010 Tax Law Impacts Grace College & Seminary

The New 2010 Tax Law Impacts Grace College & Seminary

The $858 billion tax relief bill signed into law by President Barack Obama on December 17, 2010, includes important legislation for Grace College & Seminary and other charitable organizations.

Continuing a series of tax breaks from the Bush era, the latest bill (The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) restores the IRA Charitable Rollover for 2010 and permits its use in all of 2011. The act is retroactive to January 1, 2010, so donors who previously made 2010 IRA rollovers will qualify.

This means that individuals who are 70½ or older and receive IRA distributions may transfer those finances to a public charity such as Grace without any tax liability. The tax-free component is applicable to a direct transfer from an IRA to a qualified public charity that does not exceed $100,000 for the year.

The extended legislation allows for another important benefit for 2010. Because Congress recognized that it is very late in the year, individuals who choose to make a qualified charitable distribution rollover from their IRA trustee to a charity like Grace may make their 2010 charitable gift during the remaining days in December 2010 or in January 2011.

To take advantage of this 2010 tax law, or if you have questions regarding IRA distributions, please contact Greg Weimer, Grace’s Director of Planned Giving, at 866-448-3472 ext. 6124.

As with all retirement and investment tools, talk to your financial management representative for details.

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