Seniors 70 ½ and older have two months left to take advantage of a tax break for charitable donations in 2008 and help the Tucson community in the process, says certified financial planner David McMenamin.
The Horizon Financial Group owner and president is alerting his clients not to miss out on a retroactive extension of the IRA Charitable Rollover, which allows age-qualified IRA participants to donate up to $100,000 from their individual retirement accounts to qualifying charities without paying taxes on the distribution. Married couples who qualify who each have their own IRA may individually contribute up to $100,000.
“For retirees with large IRAs who may not need the required minimum distribution to provide for living expenses this is an excellent strategy to reduce some taxes,” McMenamin said. “In these hard economic times, the IRA Charitable Rollover extension is a way for Tucson retirees to give to their favorite charity rather than be hit with a large tax bill. In return, charities that are hurting can benefit greatly from this and give back to the Tucson community.”
The tax break – originally part of the Katrina Relief Act in 2005 – was reinstated Oct. 3 when President George W. Bush signed the Emergency Economic Stabilization Act. The new legislation retroactively extends the benefit to Dec. 31, 2009.
McMenamin said there are exceptions to the extension, so seniors should check with their financial planner before making a donation.
“As with most major financial decisions in life, it’s always wise to consult an expert to make certain the charity is legitimate and contributors receive the tax break they deserve,” he said.
For more information on the rollover, contact David McMenamin at david@horizonfinancialgroup.net.
ABOUT HORIZON FINANCIAL GROUP
Horizon Financial Group, L.L.C., is a Tucson-based wealth management firm that specializes in investment management, retirement and estate planning services for a select group of retirees. Our mission is to empower clients to reach their financial goals and reduce their fears about money by helping them make smart financial decisions. For more information, call (520) 751-4300 or visit http://www.horizonfinancialgroup.net.
