Just days remain before the Charitable Individual Retirement Account provision expires. Extended last December as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the provision allows those 70½ and older who have traditional or Roth IRAs to make tax-free gifts from their IRAs to qualified charities without incurring taxes on the withdrawal. The IRS also allows you to count this distribution as part or all of your required minimum distribution (RMD) for the 2011 tax year.

The largest benefit to such a distribution is to curtail the effects of the IRS rule that prevents tax payers from deducting more than 50% of their adjusted gross income (AGI) for charitable gifts. Taking your RMD as income has the effect of increasing your AGI which in turn affects other tax deductions and federal benefits. For example, you may deduct your medical expenses when they exceed 7.5% of your AGI; furthermore, certain premium costs for Medicare are tied to your AGI.

Donors may choose to make charitable distributions from their IRAs in any amount they choose up to $100,000. A married couple with an IRA for each can give up to $200,000.

Make your year-end gift now to the Louisiana Tech University Foundation! A gift from your IRA is the ideal way to invest in Louisiana Tech University and its students.

To take advantage of these tax savings, please contact your IRA administrator. For more information or assistance, please contact Jennifer Riley at the Louisiana Tech University Foundation (jennifer@latechalumni.org or 318-255-7950).

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