Dec. 31, 2009, and year-end tax planning is upon us; please consider the advantages of distributions from your Individual Retirement Account (IRA) as a vehicle to achieve your charitable goals.

The Pension Protection Act of 2006 permitted individuals to roll up to $100,000 from an IRA directly to a qualifying charity without recognizing the assets transferred as qualifying income. The Emergency Economic Stabilization Act of 2008 extended this provision through Dec. 31, 2009.

Individuals who are 701/2 or older may direct distributions from a traditional IRA to an eligible charitable organization. Shortly after individuals reach 701/2, they are generally required to receive distributions from their traditional IRA. For the purposes of the Required Minimum Distribution, the Internal Revenue Service treats distributions from an IRA the same, whether individuals use the distribution for personal purposes or directs the distribution to a charity. When directing the distribution to the charity you will not have to report it as income and it counts as your required minimum distribution. Individuals must instruct their IRA trustee to make the contribution directly to an eligible charitable organization. The trustee will send the contribution directly to the charity. The charity furnishes you with a written acknowledgment of your gift for your records.

If you would like more information about making a charitable donation to Hospice of Huntington, please contact Karen Dickson at 304-633-2169 or by e-mail at kdickson@hospiceofhuntington.org.

Karen Dickson is director of planned giving and major gifts for Hospice of Huntington.

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Karen Dickson, director of planned giving & major gifts at Hospice of Huntington.

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