Use Your IRA to Help Others

Under the reinstated charitable IRA legislation, individuals 70½ or older can make gifts to us using funds transferred directly from IRAs—without reporting it as taxable income. If you are 70½ or older, we hope you'll take advantage of this gift that lets you witness the benefits of your generosity. But don't wait too long: This opportunity ends Dec. 31, 2009.

Benefits to You

• The gift generates neither taxable income nor a tax deduction, so even those who do not itemize their tax returns receive the benefit.
• You may transfer up to $100,000 directly from your IRA in 2009.
• The distributions may be in addition to or fulfill any charitable giving you have already planned.

Note: You can make a gift from your IRA even if you don't have to take a required minimum distribution in 2009.

Example: How It Works
Patricia, 80, has $450,000 in an IRA and has pledged to give us $75,000 this year. If Patricia makes a direct transfer of $75,000 from her IRA, she will avoid paying income tax on $75,000. She cannot, however, claim a charitable deduction. Patricia has found an easy way to help others.

If you would like to take advantage of this limited-time opportunity, be sure to consult your financial advisors to ensure that the plan is right for you. Please also feel free to contact Susan Damiani at 718-990-7562 or damianis@stjohns.edu with any questions if you are considering this type of gift.