Law Allows Tax-Free Charitable Contributions From IRAs Until Dec. 31

                                                                                Contact: Fred McCarter (812) 539-4115

FOR IMMEDIATE RELEASE

LAWRENCEBURG, Ind., November 1, 2007 – Since 1974, millions of Americans have saved billions of pre-tax dollars in Individual Retirement Accounts (IRAs). Thanks to continued savings and investment returns, an estimated $3.6 trillion is currently invested in IRAs, and the total continues to grow.

A provision in the federal Pension Protection Act of 2006, signed by President Bush, creates a new option: transferring IRA assets directly to charity. By going directly to charity, the money is not included in the IRA owner’s income and – most importantly – is not taxed, preserving the full amount for charitable purposes. The law covers all gifts made this year and next.

Until December 31, 2007, holders of traditional and Roth IRAs who are at least 70 ½ years old can make a direct charitable transfer up to $100,000. As a qualified public charity, the Dearborn Community Foundation (DCF) can help donors execute the transfers and choose from several charitable fund options for their gift. Donor Advised Funds do not qualify for tax-free IRA transfers.

“This is a wonderful opportunity – for people who would rather give to charity than pay taxes – and the non-profit organizations they choose to support,” said Fred McCarter, Executive Director of DCF.

Thanks to decades of deliberate saving and favorable investment returns, a substantial share of today’s retirees have more money in their IRAs than they’ll ever need. Many have expressed an interest in giving the funds to charity, but income tax must be paid on all withdrawals, which sharply reduces the value of the gift. Others have asked about designating their children as beneficiaries, but that may draw additional tax consequences.

“For larger estates, a good portion of IRA wealth goes to estate taxes and income taxes of beneficiaries,” McCarter said. “Experts estimate heirs will receive less than 25 percent of most IRA assets that pass through estates. 

“This really is a limited-time offer: the window is open now, but it will close at the end of 2007 unless Congress extends it,” said McCarter. “For anyone interested in establishing a permanent legacy in our community, this is the opportunity of a lifetime to make the gift of a lifetime.”

For more information about how the Dearborn Community Foundation can serve you and the community, contact Fred McCarter at 812-539-4115. Also learn more about DCF by visiting the Foundation website at www.dearborncf.org.

The Dearborn Community Foundation is a non-profit public charity established in 1997 to serve donors, award grants, and provide leadership to improve the Dearborn County community forever.

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