October 30, 2006
New IRA Regulations Widen Donor Options

The Pension Protection Act, signed in August of 2006, allows IRA owners age 70 ½ and older to transfer as much as $100,000 directly to Shimer. This is a two year provision and is available in 2006 and 2007. The transferred amount is excluded from the IRA owner’s taxable income and can count toward the minimum required distribution in each year.

This means that an individual who might have been pushed into a higher income tax bracket by being obliges to accept a required minimum distribution can avoid the extra taxation, and help Shimer at the same time!

There are simple conditions. The transfer must be made directly from the IRA account to Shimer and must be for an outright gift. Planned gifts, such as gift annuities and trusts do not qualify. Again, there is not an income tax deduction for the transfer; the amount is simply not included in the IRA owner’s income.

Would you like further information? Email John Meech, Senior Program Officer, Advancement Office, or call (312) 235-3540.