The recently passed "2008 Economic Stabilization Act"* includes a provision that extended and makes retroactive Charitable IRA Rollovers for 2008 & 2009. The extension is retroactive to January 1, 2008 and applies to all charitable IRA rollovers made through December 31, 2009.

Highlights of the Charitable IRA Rollover**:

• The donor must be at least 70 ½ or older
• IRA Rollovers must be made to a qualified 501(c)3
• Individuals may donate up to $100,000
• Contributions must be made directly from the IRA to the charity
• Contributions for 2008 must be made by December 31, 2008 (the same applies for 2009)

How this benefits the donor: 
A charitable IRA Rollover allows the donor to donate funds directly from their IRA to a charity of their choice. The donor avoids having to pay taxes on the funds transferred from their IRA and the withdrawal still counts towards their Required Minimum Distribution.

Examples of who benefits:

• Donors that have income sources in addition to their IRA
• Donors that are unable to itemize their tax return
• Donors that do itemize their return and have reached the charitable giving limit
• Donors that want to make a major gift and want to minimize their tax liability