Congress has passed, and the president has signed, a law permitting IRA owners age 70½ and older to make distributions to qualified organizations such as The Leukemia & Lymphoma Society (LLS) of up to $100,000 per year during 2008 and 2009. An earlier law permitting IRA gifts expired at the end of 2007.

No income tax deductions are available for IRA gifts, but donors may save taxes anyway, where gifts take the place of required minimum distributions that otherwise are 100% taxable. Such gifts can also relieve tax penalties that affect high income taxpayers, including loss of AMT exemptions and reductions in itemized deductions and personal exemptions. In some cases IRA gifts may reduce income taxes on Social Security benefits.

To make a 2008 gift from your IRA, contact your IRA trustee or custodian as soon as possible - preferably before you receive any required minimum distributions. State that you wish to have a distribution check issued in our name and mailed to LLS, attention Planned Giving Department, 1311 Mamaroneck Avenue, Suite 310, White Plains, NY 10605 with a note identifying you as the donor. It's important that you notify us so we can coordinate with your IRA administrator to ensure that your gift is completed by the end of the year and that you receive the necessary receipt.

IRA gifts may have special appeal for:
• Friends who use the "standard deduction." Some people give thousands of dollars to worthwhile causes but receive no tax benefit because they are unable to "itemize" their deductions. Gifts from an IRA will count against the annual distributions required of IRA owners over 70½. Taxable income will be reduced by amounts transferred to charity by the IRA custodian, even though donors can't claim a charitable deduction.
• People who want to reduce taxes on their estates. IRAs are subject to both income taxes and "death taxes" after the owner dies. Making qualified IRA gifts avoids these taxes.
• Donors who can't deduct all their contributions. The most a person can deduct for charitable gifts in any year is 50% of AGI (excess deductions can be carried over for up to five years). But gifts made directly from IRAs aren't considered under this 50% limitation, which makes possible extra tax benefits for friends who wish to make large gifts this year.

Are you ineligible to make IRA gifts? People of any age can name LLS as partial or 100% death beneficiary of an IRA, 401(k) or 403(b) plan or other retirement account and avoid both income taxes and "death taxes" that may be payable by your heirs. You also can leave your retirement account to a trust that will pay income for life to a spouse or other family member, with later benefit for LLS.

We encourage you to contact us toll-free at (888) 773-9958 or at www.LLS.org/PlannedGiving with questions concerning any gifts from retirement plans, including qualified IRA contributions and beneficiary arrangements.

Copyright © 2008 by R&R Newkirk. All rights reserved.