On October 3, 2008, President Bush signed the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, which extended an excellent charitable planning opportunity for both 2008 and 2009. The IRA rollover provides an excellent means for individuals to support any of the ministries they love, for example, their local church, state, or national ministries, missions, Women of the Church of God.

If you are age 70½ or older, you are eligible to make an IRA charitable rollover to public charities like ours. And the good news is that your IRA distribution to charity will be similar to other IRA rollovers: it will not be included in your federal taxable income.

While there is no added deduction for an IRA charitable rollover, by excluding up to $100,000 from your taxable income, you may experience a substantial savings in income tax that would not otherwise be available. An added bonus is that your IRA charitable rollover this year will qualify for all or part of your required IRA minimum distribution.

Who may want to use an IRA charitable rollover? Charitable IRA rollovers are popular for at least five reasons:

1. Convenience: It is a very simple and easy way to make a gift.
2. Standard Deduction Benefit: With an IRA charitable rollover, you may take the standard deduction. Since the IRA rollover is not on your return, it may reduce your taxes.
3. Lower Tax on Social Security: An IRA distribution can make 85 percent of your Social Security income subject to income tax. By taking advantage of the IRA charitable rollover, you may lower your income and reduce the taxable portion of your Social Security income to 50 percent.
4. No Giving Limits: With an IRA charitable rollover, you may give more than the usual deductible amount of 50 percent of income.
5. Lower Income Level Saves Tax: Persons with higher incomes often lose part of their charitable deductions and other tax benefits. Use of an IRA charitable rollover for part or all of your IRA required distribution may lower your income and reduce taxes.

Your IRA charitable rollovers during 2008 and 2009 are limited to a maximum of $100,000 each year.

If you would like to learn more about how an IRA rollover can support ministry and provide you with possible tax savings, please contact the Church of God Foundation toll-free at 877-549-4438 or by e-mail at info@chogfoundation.org. You can also visit the Foundation online by clicking here.