IRA Charitable Rollover Extended through December 31, 2009

Included in the $700 billion bailout package that was recently signed into law is a provision that revives the availability of the IRA Rollover through 2008 and 2009. As you may recall, this provision as included in the Pension Protection Act of 2006 expired at the end of 2007.

Provision Overview: The IRA Rollover allows individuals who are 70-1/2 or older to make a tax-free distribution of up to $100,000 from an IRA to Dartmouth or other charities, subject to certain qualifications:

• The donor must be age 70-1/2 or older at the time of the distribution.

• Limited to $100,000 per taxpayer, per year. A married couple can donate up to $200,000 provided each spouse owns at least one IRA and can each make a qualified charitable distribution of $100,000 from their plans.

• Gifts must be outright. The contributions cannot be used to fund gift annuities or charitable remainder unitrusts.

•  Applies only to IRAs (not other forms of retirement plans such as 401(k), 403 (b), etc.).

•  Gifts cannot be made to donor advised funds and supporting organizations, including most private foundations.

•  Gifts must be made directly from the IRA to Dartmouth . The check must be made payable to “The Trustees of Dartmouth College” and either mailed by the IRA custodian directly to the College, or mailed to the donor who in turn forwards it to Dartmouth . It is important for the donor to instruct the IRA custodian to identify the donor's name on the check or transmittal. Additionally, the donor should notify Dartmouth 's Recording Secretary Kathleen Martin via     e-mail at kathleen.c.martin@dartmouth.edu or by phone at 603-646-1298.

This is a unique opportunity because it is a tax exclusion, which means the donor does not have to report the IRA withdrawal as income on his or her tax return. Even though the donor does not get a charitable deduction for the gift, it is more advantageous because the donor will not be subject to deduction limitation rules that can diminish the tax benefits and limit the deductibility of the donor's other charitable gifts. In addition, the charitable distribution counts towards the donor's required minimum distributions.

We strongly recommend that the donor take no action without consulting a tax advisor.

To learn more, call the Dartmouth Gift Planning Office at 1-800-451-4067.

Or e-mail: Gift.Planning@Dartmouth.EDU

Click here for detailed instructions on how to make an IRA Rollover gift to Dartmouth College.