Dick and Anne Treckelo

21 Aug Dick and Anne Treckelo

Their gift: A traditional IRA

In 2006 and again this year, Indiana residents have the opportunity to gift from their IRAs – while they are living – without having to pay state taxes on that gift, thanks to the federal Pension Reform Act of 2006.

If you are over 70 ½ on the date of a gift (distribution) to charity, you may exclude from your gross income up to $100,000 from a traditional or Roth IRA. Distributions can be applied to satisfy a plan owner’s minimum required distribution for the year, but they must be delivered or postmarked to the Elkhart County Community Foundation (or other charity) no later than December 31st, 2007.

Retired Elkhart attorney Dick Treckelo and his wife Anne took advantage of this unique opportunity last year and again this year. Their traditional IRA withdrawals will benefit one of their passions: Elkhart’s Wellfield Botanical Gardens, currently under construction.

One technicality about this new option: donor advised funds and supporting organizations were excluded from the charitable IRA rollover. However, the definition of a donor advised fund was modified so non-endowed advised funds are now reclassified as non-endowed agency designated funds. (For clarification or more information, please contact us.)

“The ECCF’s help on making this possible was wonderful,” Dick and Anne agree. “The ECCF is a real asset to this area; we marvel at what all it has accomplished. It’s such a versatile organization, allowing you to give in so many different ways to benefit the community that you couldn’t accomplish otherwise.”

Catherine Wells-Bentz

 

Advantages of gifting from a IRA or 401K account:

  • Maximize value of asset
  • Minimize estate tax
  • Reduce gross income
  • Receive a federal deduction
  • Avoid Indiana state tax (on what would have been taxable income)