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The Pension Protection Act

The Pension Protection Act. IRA Charitable Rollover. PPA began in 2008-2009 and has been extended through 2012!. It is potentially the most favorable charitable legislation in many years! The charitable legislation includes both incentives and reforms.

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The Pension Protection Act

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  1. The Pension Protection Act IRA Charitable Rollover

  2. PPA began in 2008-2009and has been extended through 2012! • It is potentially the most favorable charitable legislation in many years! • The charitable legislation includes both incentives and reforms. • The charitable incentives open up power for a potential $1 Billion plus in new charitable giving from IRAs. • These gift opportunities are be for current individuals age 70 ½ and above.

  3. Five general categories for current IRA GIFTS • Convenience Donor - who simply find it and easy method for an end of the year gift. • Generous Donor- who wants to give past the 50%. • Major Donor –Ministry Friends of OBHC who look at favorable opportunity to make a major gift. • Standard Deduction Donor- will benefit from a direct IRA to charity gift to OBHC. • Social Security Donor- may also benefit from IRA gifts.

  4. IRA Gift Requirements • The IRA gift must otherwise have been ordinary income to the IRA owner. • The IRA owner must be 70 1/2 or older. • The gift must be to a exempt public charity. • It may not be a private foundation, supporting organization or donor advised fund. You should transfer funds directly from an IRA or Rollover IRA outright to one or more public charities. • You make the gift on or before Dec. 31, 2012. • The gift is $100,000.00 or less each year.

  5. How the IRA LAW WORKS! • George, 75 years old, has $500,000.00 in an IRA and has decided to gift $85,000.00 this year to OBHC. • If George gifts $85,000.00 from the IRA, He will avoid paying income tax on that amount. • He cannot, however, claim a charitable deduction – it is a pure washout. • George has found an easy way to benefit OBHC without tax complications.

  6. How it works………continued • If he desired, George could give more than $100,000.00. • The legislation allows a maximum $100,000.00 gift in both the 2011 and 2012 tax years. • So George could give $100,000.00 each year. If his spouse has an IRA and is 70 ½ or older, she can also give up to $100,000.00 each year.

  7. Oklahoma Givers Ranked2nd Nationally • The 2nd generous state nationally gives 1.05% of their assets to charities of choice. • This IRA Charitable Pension Act is an awesome opportunity for generous givers to give more to OBHC.

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