“With these internships, you’re able to gain the experience you need for your future aspirations,” says Sejdo Mulic, a 21-year-old senior majoring in biological sciences. “At the same time, you are able to connect with the community and contribute to the community.
TOP STORY - Tax-free gifts from IRAs re-authorized
From the Binghamton University Foundation
Congress has re-authorized legislation that allows donors to make charitable gifts from their IRA accounts during tax years 2008 and 2009 without incurring income tax on the withdrawal. If you are age 70½ or older and are required to take minimum withdrawals and you do not need them for personal use, this may be a great way to make a gift to one or more qualified charities. While you cannot claim a charitable deduction for IRA gifts, you will not pay income tax on the amount.
* You must be age 70½ or older at the time of the gift.
* Transfers must be made from a traditional or Roth IRA account by your plan provider DIRECTLY to the charity. Funds that are withdrawn by you and then contributed do NOT qualify.
* Gifts from 401k, 403b, SEP and other retirement plans do not qualify.
* Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.
Benefits--Qualified charitable distributions:
* Can total up to $100,000 in each tax year (if your spouse has a separate IRA account, you can each contribute up to $100,000 per tax year);
* Can be excluded from your gross income for federal income tax purposes on line 15a of Form 1040 (state charitable deductions vary, check with your financial advisor);
* Can be used to satisfy your Minimum Required Distribution (MRD);
* Are not subject to the 50 percent deductibility ceiling or the 2 percent rule.
Example: Suppose Mary has $500,000 in an IRA and because she is 70½ years old, she will be required to withdraw approximately $25,000 this year. And further, suppose that she also wants to contribute $20,000 to her favorite charity. She can authorize the administrator of her IRA to transfer $20,000 directly to her charity and $5,000 to herself. The $20,000 distributed will not be subject to federal tax and will be counted toward her annual Required Minimum Distribution.
PLEASE NOTE: This summary is for educational purposes and is not intended as legal or tax advice. Consult your own legal or tax advisor before making any decision based on this information.
Last Updated: 11/12/13