News Release

FORT MYERS, Florida–The Pension Protection Act signed into law last week includes a new charitable-giving incentive that will help older people give up to $100,000 tax free to their favorite charities. For individuals older than 70 1/2, the legislation allows tax-free transfers of money directly to charities from traditional or Roth Individual Retirement Account (IRA) assets, without first counting it as income and paying income tax.

A. Scott White, CERTIFIED FINANCIAL PLANNER™ in Fort Myers, said this law change is an important, time-limited opportunity. “This law allows a tax-free rollover of funds for charitable donations,” said White. “The only restriction is that the donations be made directly to qualified public charities as defined by the Internal Revenue Service. Donations to private foundations and donor-advised funds are not covered.”

The incentive is scheduled to end on December 31, 2007, and will apply to gifts completed by Jan. 1, 2008. In the past, individuals who wanted to donate IRA funds weren’t able to completely deduct the gift for federal income-tax purposes because of the 50 percent of adjusted gross income (AGI) limit.
“Our high net worth clients over 70 years old are pleased to have the opportunity to increase their charitable giving under this provision,” said White. “In the past, many retired clients wanted to give money to charity, but because income tax had to be paid on IRA withdrawals, the value of their gifts was reduced.” By going directly to charity, the donated funds are not included in the IRA owner’s income and are not taxed.
Since 1974, Americans have participated in Individual Retirement Accounts (IRAs), saving pre-tax dollars. Prior to the temporary law change, a large part of IRA inheritances went to pay estate taxes and income taxes of beneficiaries.
“The new law will benefit charities,” said White. “It allows people to give to charity rather than pay taxes.” The law covers all gifts made this year and next, and the provisions expire December 31, 2007 unless Congress extends the law. “For anyone interested in making a major gift, this may be the opportunity of a lifetime,” said White.
More information about charitable giving is available at www.ascottwhite.com.
Securities offered through Raymond James Financial Services, Inc., member, NASD/SIPC, 1510 Royal Palm Square Boulevard, Fort Myers, FL 33919; (239) 936-6300.