Donate IRA funds

In August, Congress passed legislation aimed at spurring charitable giving. One important change is a provision that allows donors to avoid tax penalties when they make a gift to a charity from their IRA.

The Pension Protection Act of 2006 (H.R. 4) allows people who have reached age 70? to exclude from their income up to $100,000 per year in retirement plan assets if it is contributed directly to a qualifying charity. The new "IRA charitable rollover" will be allowed in 2006 and 2007 only, and must be made from a traditional or Roth IRA and not from any other type of retirement plan.

By giving directly to charity, the money is not included for income tax purposes and - most importantly - is not taxed, preserving the full amount for charitable purposes.

Please contact your tax advisor to obtain more details concerning this new legislation.

If you are interested in making PCI a designee of such a gift, contact our Associate Director of Development, Tom Stephenson, at (858) 279-9690 x322.