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The IRA Charitable Rollover passes for 2010

The IRA Charitable Rollover for 2010 has been approved as part of The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This allows persons aged 70 1/2 or older to transfer up to $100,000 to charity. Additionally, because it is very late in 2010, individuals who choose to make a qualified charitable distribution (QCD) rollover from their IRA trustee to a charity may make their 2010 charitable gift during 2010 or in January of 2011.

Basics of Initiating the Rollover

1. The IRA owner must be 70½ or older;
2. The owner may transfer up to $100,000 each year. A 2010 transfer qualifies for the required minimum distribution.
3. The transfer must be to a public charity (Lakeland College is a publically recognized 501 © 3) 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 charitable organization. The donor should NOT take a withdrawal and then make a donation. Doing so in this manner saves the donor from having to take this distribution as taxable income.
4. The donor is to authorize the fund company (trustee) to send money directly from your account to the charity, or charities of choice.

If interested, please contact Stuart Merritt, Director of Major and Planned Gifts at Lakeland College for the name, address and tax ID number of the College to put in your e-mail to your IRA Custodian authorizing them to make the transfer to Lakeland College. Stuart's contact information is: 920.565.1383 or merrittsk@lakeland.edu.

Sample Donor e-mail to Send Your IRA Custodian to Authorize the Transfer

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 Lakeland College, P.O. Box 359, Sheboygan, WI 53082. The Treasury Tax ID Number for Lakeland College is 39-0821861.

It is my intention to make a Qualified Charitable Distribution (QCD) to Lakeland College 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 e-mail those to me.

Cordially yours,

IRA Owner
John Q. Donor

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