Pension Protection Act
The Pension Protection Act, signed by President Bush August 17, 2006, contains provisions designed to encourage IRA gifts by people over 70½ years of age. These provisions enable you to support Montana Tech by authorizing your IRA’s trustee to transfer funds from your account as a charitable gift to Montana Tech.
Because these funds are transferred from your account to Montana Tech, they will not be counted as income to you, the donor. A gift given in this manner won’t result in an income tax deduction to you, but will count toward your mandatory annual IRA distribution. For instance, if you are required to withdraw $5,000 from your IRA each year, you can now transfer this money to Montana Tech as a gift, and not incur any federal taxes on these funds.
IRA funds are often heavily taxed when withdrawn. The Pension Protection Act gives you a new opportunity to support Montana Tech, without having a percentage of your IRA savings siphoned off in federal and state taxes.
The Pension Protection Act allows this type of gift from your IRA in 2006 and 2007, for amounts up to $100,000 each year. For more information on making this type of gift, contact your IRA trustee, tax advisor or the Montana Tech Foundation.
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