Gift Planning

For more than 50 years the International Reading Association has been a professional home for those involved in teaching reading to learners of all ages all over the world. Help us continue that tradition by making a gift to the International Reading Association in whatever amount you can afford. Your generosity will be greatly appreciated.

Giving from your Individual Retirement Account

The Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (H.R. 1424), Congress has extended the tax law to permit donors over age 70½ to make charitable gifts through their individual retirement accounts until the end of 2009. The extended law states that people age 70½ and older can instruct individual retirement account trustees to make transfers to organizations they support without incurring taxable income on those amounts.

Until the end of 2009, if you don't need your minimum distribution income for living expenses, we want to offer you a satisfying alternative. Instead of paying federal income tax on the distribution, you can rollover all or a portion of your minimum distribution to the International Reading Association up to the $100,000 maximum and not pay federal income taxes on the gift.

Up to $100,000 can be given in the manner identified above, and a spouse can give an equal amount from his/her individual retirement account. No federal income tax deductions are available for individual retirement account gifts, but donors can still save significant taxes. Gifts must be made directly from an individual retirement account to the International Reading Association.

In short then, individual retirement account gift rules and provisions are as follows:

• Donors must be past the age of 70½ and own a traditional or Roth individual retirement account - other retirement plans such as pensions, 401(k) plans and others are not eligible.
• Only the individual retirement account trustee can transfer gift amounts to a qualified organization. If individual retirement account owners withdraw funds and then contribute them to charity separately, amounts withdrawn will be included in the donor's gross income.
• The rollover will count toward your minimum distribution but will not be counted as taxable income.
• No charitable deductions are allowed, but gift amounts will not be included in a donor's income.
• Individual retirement account gifts may not exceed $100,000 and may be made only in 2009. The "ceilings" on contribution deductions (50% of adjusted gross income (AGI) for cash, 30% of AGI for long-term capital gain property) do not apply to individual retirement account gifts.
• Transfers are not permitted to donor advised funds, private foundations or "supporting organizations."
• To make an individual retirement account gift, contact the trustee of your account.

Make a Gift

For more information on making a gift, contact IRA's Director of Development, Barbara Teter, by phone at 800-336-7323, ext. 480 or by bteter@reading.org.