OLD TRAIL SCHOOL MAGAZINE

Development | Ne w sIRA Charitable Distribution Deadline December 31Time is running out for giving incentives benefiting individuals 70½ or olderIndividuals wishing to take advantage of a temporary lawallowing charitable distributions through their individualretirement accounts (IRAs) and Roth IRA accounts onlyhave a limited time left to make these gifts.The Pension Protection Act of 2006 allows individuals at least age70½ to make gifts to Old Trail and other qualified organizations withfunds directly transferred from IRAs — without paying taxes on thedistributions.These distributions count toward minimum required distributions.Transfers generate neither taxable income nor a tax deduction,so even those who do not itemize their tax deductions receive thebenefit. There are additional state tax benefits for Ohio residents.To make a charitable distribution from your IRA or Roth IRA to OldTrail School:• You must be age 70½ when you initiate the distribution.• The maximum amount you may transfer is $100,000 perindividual.• Contact your IRA Administrator and inform him or her that youwould like to make a charitable distribution from your IRA orRoth IRA account to Old Trail School. Ask your administratorto enclose a letter with your name stating it is an IRA charitabledistribution and send with a check directly to:Old Trail School2315 Ira Rd.PO Box 827Akron, OH 44210Attn: Amy Wong, Director of DevelopmentAs always, when making important financial decisions, weencourage you to consult qualified professional counsel to see ifa particular charitable gift is right for you.Contact Amy Wong at 330-666-1118 x 329 or awong@oldtrail.org with anyquestions or to let her know a distribution will be coming. Please provide thename of the plan administrator and the amount in your correspondence.Donor uses Pension Protection Act to make giftCarolyn Loudon Morgan ‘52 knew she wanted to make a gift to Old Trail School’s endowment. She had manyfond memories of the School and wanted to help future generations of students.Carolyn made provisions for this gift in herestate plans and became a member ofOld Trail’s 1920 Society, which recognizesindividuals who have included the School intheir estate plans.However, in 2006, Carolyn and herhusband, Dick, saw an opportunity toaccelerate the gift by taking advantage of atemporary federal tax provision that allowsdirect charitable rollovers from IndividualRetirement Accounts (IRAs).“When we heard about the benefits of usingour IRA to make a gift, we knew we wantedto take advantage of it,” Carolyn said. “Itexcites me to know that this gift will benefitOld Trail students now and that we can seeit put to use.”The Morgans took advantage of a temporarylaw through The Pension Protection Act of2006 that enables individuals aged 70 ½or older to make gifts to Old Trail and otherqualified charitable organizations using fundsdirectly transferred from their IRAs – withoutpaying taxes on the distributions. Thesedistributions count toward minimum requireddistributions, generate neither taxable incomenor a tax deduction, there may be additionalstate tax benefits for Ohio residents andcannot exceed $100,000.Time is running out to take advantage of thischaritable rollover provision that expires onDecember 31, 2007. For more informationon how you can use your IRA to make a giftto Old Trail, please call Amy Wong, Directorof Development, at 330-666-1118 x 329 orawong@oldtrail.org.Carolyn30THE OFFICIAL PUBLICATION OF OLD TRAIL SCHOOL25