New Tax Act

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New tax laws allow qualified individuals to make contributions from their IRAs

Crossroads Fund wants to alert you to a significant, temporary change in the current tax policies of the United States. In August of this year, Congress enacted the Pension Protection Act of 2006. The provisions of this act permit taxpayers age 70 ½ and older to make tax-free “qualified charitable deductions” totaling up to $100,000 per year from Individual Retirement Accounts (IRAs) or Roth IRAs.

Prior to this legislation, there has been little or no tax advantage to gain from giving a gift from an IRA account. Now, individuals who do not itemize their taxes, individuals who have reached their charitable giving limits, and others outlined in the enclosed fact sheet are all eligible to receive a tax benefit when they make contributions from qualified IRA accounts. In addition, the contribution can count as part of the required minimum distribution.

The law prohibits contributions to donor advised funds, private foundations and supporting organizations, but allows contributions to other public charities, including public foundations, as long as the gift is to the general fund of the general fund of the public foundation or a field-of-interest fund at the public foundation.

The law is set to expire on December 31, 2007. All gifts made in 2006 and 2007 are eligible for this benefit. It is unclear whether the law will be extended or renewed, so we encourage you to take advantage of this opportunity expand your charitable impact, and incur substantial tax savings in the process.

For more information, refer to this fact sheet or read all about the ramifications of the tax law at Independent Sector.

Crossroads Fund is not rendering legal or tax advisory services. For advice and assistance in specific cases, the services of an attorney or other professional advisor should be obtained.

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