Money

  • Dec
  • 14

What do animals have to do with your IRA?

Posted by at 4:21 AM | Permalink | No Comments


© 2011 Jupiterimages

What do animals have to do with your IRA?

Federal legislation that allows you to make a tax-free gift from your IRA to help animals is about to expire. What does that mean for you or perhaps for another compassionate person in your life?

If you are 70 1/2 or older, you are required to take distributions from your standard IRA, even if you don’t need the money for living expenses. And anytime that you withdraw funds from an IRA, income taxes must be paid on those distributions. Many of us would prefer to have our IRAs help animals without having to pay taxes on the money, so we’ve made PETA the beneficiary. But that doesn’t take effect until we die. Now, for the tax year 2011, people who are 70 1/2 or older can make a direct transfer to PETA of up to $100,000 per year before death, without paying any taxes. This is a very good deal for animals!

Charitable rollovers can be used to satisfy the minimum required distributions from your IRAs (but aren’t limited to that) and can lower the balance that will be used to compute future required distributions. To make sure that the transfer is fully tax-free, have the funds sent directly to PETA and not to the IRA owner or another individual first.

Whatever your situation is, it’s a good idea to check with your tax adviser to see how charitable donations could save you from paying Uncle Sam more money (while saving animals!). For more information on how to support PETA’s work to help animals, please contact us at PlannedGiving@peta.org or call Tim Enstice, the PETA Foundation’s director of planned giving, at 757-962-8213. More information on how to make tax-free gifts from your IRA is available here.

 

Posted to Money | Posted to Tags: , , ,

More:

Bookmark and Share
Post a Comment

Please keep comments polite, constructive, and on topic. All fields in bold are required.

About Money

Celebrate today, plan for the future, and leave a legacy.

Recent Comments

Disclaimer

The information and views provided here are intended for informational and preliminary educational purposes only. From time to time, content may be posted on the site regarding various financial planning and human and animal health issues. Such content is never intended to be and should never be taken as a substitute for the advice of readers' own financial planners, veterinarians, or other licensed professionals. You should not use any information contained on this site to diagnose yourself or your companion animals' health or fitness. Readers in need of applicable professional advice are strongly encouraged to seek it. Except where third-party ownership or copyright is indicated or credited regarding materials contained in this blog, reproduction or redistribution of any of the content for personal, noncommercial use is enthusiastically encouraged.