Please consider the GSE for your IRA rollover

As you may already know, last month President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This bill restores the IRA Charitable Rollover for 2010 and permits its use in all of 2011.

The act is retroactive to January 1, 2010, so donors who previously made 2010 IRA rollovers will qualify to make a rollover to the PSU Foundation. The Graduate School of Education appreciates your consideration for these funds.

The principal rules for direct transfers from an IRA to the PSU Foundation are 1) the IRA owner must be 70½ or older, and 2) the IRA transfer can be no more than $100,000 each year.

The transfer must be to a public charity either outright or for a specific purpose, but may not be to a donor-advised fund or supporting organization. The transfer is made directly from a trustee to the PSU Foundation.

A very important potential 2010 benefit exists: because this law was passed very late in 2010, individuals who choose to make a qualified charitable distribution (QCD) rollover from their IRA trustee to the PSU Foundation may make their 2010 charitable gift during 2010 or in January of 2011. Therefore, in order for a rollover to qualify for an individual’s 2010 taxes, the rollover must be completed by 1/31/2011.

Rollovers for the 2011 tax year must be made by 12/31/2011.

An easy way to start an IRA Charitable Rollover to benefit the Graduate School of Education is to send an e-mail or letter to your IRA Custodian. This is usually a financial services company that manages your IRA. Please check their website for contact information.

Sample note:*

Dear IRA Custodian,

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, effective from Jan. 1, 2010 to Dec. 31, 2011, permits a rollover directly from an IRA to a qualified public charity. As the owner of IRA account #_________________ that is in the custody of your organization, I request that you transfer from that account the sum of $_________________ to Portland State University Foundation, PO Box 243, Portland, OR 97207. The Treasury Tax ID Number for PSU Foundation is 93-0619733.

It is my intention to make a Qualified Charitable Distribution (QCD) to the PSU Foundation from my IRA, which may fulfill part or all of my IRA required minimum distribution for this year.

This letter is sufficient authorization for you to make this QCD gift. However, if you require any further documents, please promptly send those to me.

Cordially yours,
IRA Owner

*If you use this sample note, please enter your account number and the amount of rollover in the blanks.

Please consult your tax advisor on how this new law affects your own individual situation.

Thank you for your ongoing interest in PSU, the GSE, and its many programs.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s