Pension Protection Act of 2006
Between now and 31 December 2007, US members 70½ and older may take advantage of a special giving opportunity allowed under the newly enacted Pension Protection Act of 2006. An IRA Charitable Rollover Provision in the Act allows US taxpayers to make tax-free distributions of up to US$100,000 annually from traditional or Roth Individual Retirement Accounts (IRA) assets to a qualified charitable organization, such as the IEEE Foundation.
Highlights of the IRA Charitable Rollover Provision:
- Gifts may be made in one or both of 2006 and 2007
- Donors must be age 70½ or older at the time of the distribution to charity
- Distributions to qualified charities in any amount up to US$100,000 are allowable per taxpayer, per year. Couples with separate IRAs can each gift up to US$100,000 per year
- Gifts can be applied to satisfy a donor’s minimum required distribution from his/her IRA for the year the gift is made
- Gifts must be outright and cannot be used to fund gift annuities or charitable remainder unitrusts
- Gifts cannot be made to donor advised funds and supporting organizations, including most private foundations
- Gifts must be made and received before 31 December 2007
- This opportunity applies only to traditional IRAs and Roth IRAs, not to other forms of retirement plans such as 401(k), 403(b), etc.
- Gifts must be transmitted directly from your IRA's plan administrator to the charity
- Because no income will be reported on your tax return, you will not receive a charitable income tax deduction for the contribution
- A gift receipt from the charity is specifically required for a donor to substantiate a charitable IRA distribution
To qualify for Charitable IRA rollover treatment, you must direct your IRA manager to transfer funds directly to the IEEE Foundation. To designate your gift to any one of the IEEE Foundation 100+ funds, instruct your IRA manager to make the gift payable to the “IEEE Foundation – Name of the Fund ”. To ensure you receive proper acknowledgement for your gift, be sure to share your intentions with the IEEE Development Office.
To learn more about the Pension Protection Act of 2006, visit these online resources:
IEEE Foundation, Incorporated
Employer Identification Number (EIN):
Join the Goldsmith League
If you decide to make a gift to the IEEE Foundation from your IRA, we you will allow us to add your name to the roster of the "Goldsmith League," the IEEE Foundation's planned giving recognition group. If you prefer to remain anonymous, we will honor your wishes and include you as an anonymous donor.
For more information, or to hold a confidential discussion, please contact:
IEEE Development Office
445 Hoes Lane
Piscataway, NJ 08854, U.S.A
Phone: +1 732 562 3860
The information on this site is for educational purposes only and is not intended as legal, tax or investment advice. If you are considering a planned gift to the IEEE Foundation, we highly recommend you consult with your own tax and legal advisors to determine the best options for you.