Clifton Gunderson LLP - A nationwide firm of Certified Public Accountants and Consultants

IRA Charitable Distribution Option Extended Through 2011

Posted February 18, 2011

Thanks to the Tax Relief Act of 2010, qualified individuals age 70 1/2 can once again take advantage of the IRA qualified charitable distribution option.

Originally part of the Pension Protection Act of 2006, this strategy offers tax savings as well as much-needed cash for charitable organizations.

• Qualified taxpayers can donate up to $100,000 per year from their IRAs to qualifying charitable organizations.
• The donated amount is excluded from gross income in the year the contribution was made.

The charitable distribution option had expired at the end of 2009. The Tax Relief Act extends it through Dec. 31, 2011, and makes it retroactive to Jan. 1, 2010. Qualified distributions for 2011 must be made by Dec. 31, 2011.

Contact your local Clifton Gunderson tax professionals, or call 1-888-CPA-FIRM to learn more about this and other year-end tax-saving strategies.

Get the latest on important tax legislation at our Tax Legislation page.