PP55 Benefits from the Pension Protection Act
Princeton Project 55 received nearly $50,000 in 2006 through charitable donations from IRA funds. Six members of the Class of '55 chose to take advantage of the opportunity generated through the Pension Protection Act of 2006 (PPA).
For the first time ever, individuals age 70 or older may make gifts directly from an IRA account to qualified organizations without being subject to Federal income tax on the IRA withdrawal. This is a limited time offer, available through December 31, 2007, with a maximum gift level of $100,000.
Under the new law, IRA gifts are most appropriate for individuals who do not need the income from their Minimum Required Distribution, have a taxable estate and wish to avoid the "double taxation" of inherited IRAs, do not itemize their deductions on tax returns, are subject to the Alternative Minimum Tax, or have been phased out of other deductions and exemptions because of high income.
For more information about the PPA or other gift planning strategies, please contact Martha Davidson, Director of Development and Finance, at (609) 921-8808 x7 or davidson@project55.org.