House of Representatives

State of Tennessee

 

Contact: Kara Watkins (615) 741-1975

FOR IMMEDIATE RELEASE

 

Dear Friends:

Recent legislation regarding making charitable gifts from Individual Retirement Accounts has passed the House and Senate and been signed into law by President Bush.

Previously, donors using IRA proceeds to make a gift to a charitable organization would first have to pay taxes on the IRA proceeds as they were withdrawn.  The new law allows donors to give the IRA distributions to the charitable organization without paying taxes.

Other facts about the new law include:

        -  Currently the law only pertains to 2006 and 2007
        -  The donor must be 70 and one-half years of age or older
        -  The maximum annual contribution is $100,000
        -  The law does not apply to 401K and 403B plans

Sincerely,

Donna Rowland
State Representative