Hi All,
I would like to share with you a savings opportunity. The Federal Government has approved a permanent change to the Internal Revenue Code that permits annual tax free distributions to charities from IRA’s. The maximum annual contribution is $100,000 and the distributor must be at least age 70 ½. The distributions count towards the required annual minimum distribution. The distribution lowers the tax payer’s gross income on their Federal tax return. A married couple who files a joint tax return can exclude up to $100,000 each provided the contributor is at least age 70 ½ and the distribution is made from their individual IRA. (That is a total of $200,000.) However, the amount of charitable distribution is not deductible as a charitable gift on the income tax return. This change in law only applies to Federal Income Tax. You will need to check with your State to determine how these charitable contributions are handled for the purpose of State income tax.
It is my understanding that Chevron Humankind will match IRA tax free distributions to qualifying charities for up to $3,000 per year. Please keep in mind that when you are ready to perform the match, you will need a valid statement of transfer as a receipt for your contribution or a copy of the cleared check (both front and back) for your contribution. If you have any questions please contact Skip Rhodes, CRA Public Affairs Chair. His phone number is 510-658-2129 and his email address is skip@skiprhodes.com.
Regards,
Alan W Horan, Chair
Benefits Committee
Chevron Retirees Association
(972) 964-1787
awhoran@verizon.net