Important Tax Update: IRA Rollover

IMPORTANT TAX UPDATE

We're pleased to report that Congress has passed a one-year tax extenders package including the IRA charitable rollover. Please note: the rollover will only be extended through the end of this year and will expire again at the end of December. As in past years, this requires donors to make distributions from IRAs directly to charity. President Obama is expected to sign this into law very soon.

What it means

IRA owners who are age 70-1/2 or older may roll over up to $100,000 from an individual retirement account directly to qualifying charities, including the New Jersey Symphony Orchestra. The advantage of the rollover: The distribution is not recognized as income to the individual; therefore, it is not subject to tax. 

Unfortunately the provision does not include contributions to donor-advised funds, private foundations, or support organizations. A contribution to our Annual Fund qualifies for this favorable tax treatment.

The IRA rollover extension does NOT allow donors to make a rollover early next year and have it count towards 2014 taxes. Donors wishing to make an IRA rollover gift this year must act before the end of this year in order for their rollover gift to count. 

How to make a contribution

If you are interested in this opportunity, please contact your IRA administrator right away to confirm what paperwork and other steps they require. A sample letter to send to your IRA administrator directing such a transfer to the NJSO can be downloaded below.

For more information or questions, contact Anne DeVivo DeMesa, Director of Major & Planned Gifts, at ademesa@njsymphony.org or 973.735.1724.