October 12, 2007

U.S. Pension Protection Act Permits Charitable IRA Rollover in United States

Attention Quota members in the United States: The Pension Protection Act of 2006 (PPA) permits individuals who are age 70½ and older to roll over up to U.S.$100,000 from an individual retirement account (IRA) directly to a qualifying charity without recognizing the assets transferred to the qualifying charity as income.

Are Quota International and the We Share Foundation qualifying charities?
Yes. Both Quota International and the We Share Foundation are qualifying charities; both have been designated by the U.S. Internal Revenue Service as 501(c)(3) entities.

Is this provision time-limited?
Yes. This provision is time-limited and applies only to distributions made before January 1, 2008. An individual who is interested in making a qualified charitable distribution can do so by directing her or his IRA trustee to make the contribution directly.

Why does the Pension Protection Act of 2006 limit this benefit to individuals who are age 70½ and older?
Shortly after an individual reaches the age of 70½ , she or he is generally required to receive distributions from her or his traditional IRA. Distributions from an IRA to a charity will receive the same treatment as a distribution to the individual taxpayer for the purposes of minimum required distributions. The benefit of rolling the distribution over to a qualified charity like Quota International, Inc., or the We Share Foundation is that the assets do not need to be recognized by the donor as income.

For more information, including a detailed information sheet on the Pension Protection Act produced by the Council on Foundations, contact Quota International Executive Director Kathleen Treiber at (202) 331-9694 or kathleen@quota.org.

To learn more about Quota International and We Share Foundation donation programs and how your donations can make a difference, click here.

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