Under a new law recently enacted, donors 70½ and older may make gifts to the Lake Land College Foundation using their IRA funds and not have to pay income taxes on the withdrawal to make the donation.
“This is a great way to make a gift to the Lake Land College Foundation,” said Jackie Joines, executive director for college advancement and foundation CEO. “The important thing is that people act now to take advantage of this opportunity before the end of the calendar year. Donors might also consider doubling their impact by making another rollover gift in early January.”
On December 18, President Obama signed the IRA charitable rollover extension permanently into law providing for donors of the Lake Land College Foundation and other organizations to make charitable gifts.
“We are glad that congress and the president realized the impact this measure has on organizations such as the Lake Land College Foundation and have made the measure permanent,” said Joines. “Waiting until the last minute in prior years was difficult on the donor and charity. This is a win-win for everyone.”
Under the legislation, donors aged 70½ or older may move up to $100,000 from their IRAs directly to qualified charities such as the Lake Land College Foundation and not have to pay income taxes on the money withdrawn.
Gifts qualify under the law if:
- The donor is age 70½ or older on the day of the gift.
- The donor transfers up to $100,000 directly from the donor’s IRA to one or more qualified charities such as the Lake Land College Foundation. This opportunity applies only to IRAs and no other types of retirement plans.
- The donor does not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
- The donor makes the gift by the end of each calendar year.
For more information on making an IRA rollover gift to the Lake Land College Foundation for tax year 2015, call 217-234-5354 before Dec. 31, 2015. Lake Land College is open through December 23 and will then observe holiday break, returning on January 4. To take advantage of this opportunity during the closure, please call 217-234-5354 and leave a message. Executive Director Joines will get in touch with you during the break.