Ways to Save in 2011

Ways to Save in 2011

News from the Foundation

by David Bundesen, President of the Episcopal Foundation of Northern California

At the end of 2011, the extension for IRA Rollovers to qualified charities will run out. What this means is that, right now, under the Pension Protection Act of 2006 (PPA), a taxpayer age 70½ or older can choose to transfer funds directly from an IRA to a qualified charitable organization (like your church). This also means that if a parishioner wishes to prepay their 2012 pledge before December 31, 2011, using a direct IRA Rollover to your church, they will not be taxed on that money. If they make a contribution from their IRA in 2012, that contribution will be taxed like a normal IRA distribution. Making a pledge payment this year with an IRA Rollover can result in significant tax savings to your parishioners.  It can also result in an early cash infusion for your Vestry that might assist with your budget process.

A ready-to-publish article on this topic is on the new Foundation blog now, and we encourage you to either use or link to. The article may be found at Pre-Pay My Pledge? Why?

I would like to stress that time is of the essence with this information. The sooner you can send this to your parishioners the better, for this tax savings is scheduled to run out in 2011 and the prospect for another extension looks very dim with the budget crises in Washington DC. Please feel free to contact Foundation Board President David Bundesen, dbundesen@norcalepiscopalfoundation.org, should you have any questions.

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