Give Now and Save! Limited Time Offer:
IRA Rollover for Gifts
You can help share the Word of God around the world now by using a Tax Free Rollover from your IRA!
If you are 70 ½ or older, the IRA Rollover may work for you, but you must act quickly to take advantage of this limited time offer. Click here to see 4 minute video »
What is the IRA Rollover? The Pension Protection Act of 2006 permits a person age 70 ½ or older to make a gift directly from their IRA to charity of up to $100,000 per year during 2006 and 2007. Though there is no tax deduction, the absence of tax on the transfer is, in effect, a tax deduction. Advisors click here for detailed information. »
Who qualifies? Anyone age 70 ½ or older with an IRA or qualified plan.
Who might benefit?
- Any donor seeking new ways to help share God's word to those thirsting for its life-changing message.
- Any donor who does not itemize but takes the Standard Deduction. The IRA rollover does not raise their taxable income.
- Any donor who will enjoy this easy, simple way to make a charitable gift through a distribution directly from their IRA.
- Any donor concerned about their Social Security income being taxable. By using the IRA charitable rollover, his or her taxable income may be lower and only 50% of Social Security payments may be taxable.
- Any generous donor may give over 50% of adjusted gross income by using an IRA for charitable gifts over the usual deduction limit.
- A major donor may give the full $100,000 per year. While there is no added deduction, avoiding an additional $100,000 of taxable income may save substantial income taxes not otherwise available due to deduction floors and phase-outs at the higher income level.
Are distributions taxable? The rollover distribution from your IRA to the American Bible Society is NOT taxable income, as long as the IRA Custodian transfers the funds directly to us.
What about my Required Minimum Distribution? The direct transfer to the American Bible Society is counted as part of your minimum distribution until December 31 for tax years 2006 and 2007 only.
Is the gift tax deductible? There is no tax deduction, but eliminating the income taxes on the distribution is effectively a tax deduction.
What type of IRA? Only regular and Roth IRAs qualify for the rollover. Donors with other qualified retirement plans may be able to roll them over to an IRA and then use the IRA rollover to make a gift.
What type of organization? The American Bible Society qualifies as a public charity in IRC Sec. 170(b)(1)(A), but IRA rollovers may not be made to private foundations, donor advised funds, supporting organizations or to deferred gift plans (such as Gift Annuities or Charitable Trusts).
What is the limit? A donor may transfer up to $100,000 to charity for each of the tax years 2006 and 2007.
When does this expire? It expires on December 31, 2007 unless Congress extends the sunset provision in the law.
Donor Stories
Easy IRA Gift
Barbara retired after forty years as a teacher. She had volunteered for many years with American Bible Society. She had an IRA and was nearing the time to take her required payout for this year in the amount of $2,000.
Generous IRA Gift
Jerry is a fireman who volunteers for a number of charities in his community. Recently, American Bible Society shared an opportunity to join in a new program with a positive impact. Jerry was excited to help, but a lead gift of $10,000 was needed to start the program.
Major IRA Gift
Tom is a retired CPA. With good investments, his IRA had grown to become over 80% of his total estate. Tom was looking for a way to rebalance his estate. He wanted to make a major gift to charity, but needed to protect his home and personal savings.
Who do I contact for more information? Call Lewis von Herrmann in New York at 800-820-6227 or email us at giftplanner@americanbible.org. Or call the following Regional Directors:
- Rob Smith (Central and Southern): 877-581-2662
- Lynn Barcklow (Western): 877-717-3910
- Don Meyer (North Central): 877-410-0776
- Wayne Murphy (Southeastern): 800-280-9946
- Charlie Preuss (Northeast): 800-791-4432
- Dave Smoot (Northern): 888-292-4567
- Jim Sheldrew (Midwest): 877-504-9075
Learn more about planned giving »
Meet our planned giving staff »
Sign up for free weekly donor e-newsletter »
Advisors: Sign up for free weekly tax e-newsletter »
View the latest charitable tax news »
