Pension Protection Act Makes IRA Gifts Tax-Free
"IRA Charitable Rollover" Is a Great Success
(Spring 2007 Newsletter)
When in August 2006 President Bush signed into law the Pension
Protection Act (PPA), he and Congress made available to friends
of Thomas Aquinas College a new way of supporting the vitally important
work of the College. The PPA makes it possible for a donor receiving
payments from an Individual Retirement Account (IRA) to assign all
or a portion of his annual distribution directly to the College…tax
free. Formerly, an IRA distribution from which a charitable contribution
was made had to be reported as taxable income, and IRS limits on
the donor’s tax deduction sometimes reduced the total amount
of his annual charitable giving.
Friends of Thomas Aquinas College have responded to this opportunity
with wonderful generosity. In the few months between the signing
of the PPA and the close of the tax year, the College received more
than $100,000 in contributions made directly from retirement accounts.
The contributions are continuing into 2007 and will likely exceed
the 2006 mark. This generosity is a reflection of the response seen
in the entire country: millions of donors have made contributions
from their IRAs to thousands of institutions in support of the good
work they do.
Congress has taken notice of this response. The IRA contribution
provision of the PPA is set to expire at the end of December 2007.
But legislation has been introduced in both the House and Senate
which would make the “IRA Charitable Rollover” permanent.
If approved by Congress, friends of Thomas Aquinas College will
have yet another means—for years to come—by which they
can support the College and thereby participate in the noble mission
of providing young people with a genuine Catholic liberal education.
For information about the current opportunity for assisting the
College through a direct IRA distribution, please contact Tom Susanka,
Director of Gift Planning, at 1-800-634-9797 or at tsusanka@thomasaquinas.edu.
You should, of course, consult your own financial and legal advisers
before making a charitable gift.
-- Qtrly Newsletter, Spring 2007
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