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Are You Preparing to Withdraw Your 2007 Minimum Required Distribution from Your IRA?
Posted March, 2007
If you said yes and would also like to support The University of Michigan, then you'll want to know that you may realize extra benefits by making a gift of your IRA withdrawals to us—thanks to new legislation in late 2006.
Under the new law such gifts will
- count toward your required minimum distributions for 2007 and
- be excluded from your gross income: a tax-free rollover.
To qualify for benefits under 2006 legislation:
- You must be 70½ or older at the time of the gift
- Transfers must go directly from the IRA to charity
- Your IRA gift(s) cannot exceed $100,000 per taxpayer in 2007
- Gift(s) must be outright
Don't miss out on these! Little-known planning pointers:
Planning pointer (1) One-Step Gift: A direct transfer of IRA funds to The University of Michigan may offer relief from the application of the alternative minimum tax (AMT). And, it will not cause the reductions in itemized deductions or personal exemptions that higher-income taxpayers face.
Planning pointer (2) Two-Step Gift: Consider giving us appreciated securities that you own outside of your IRA instead. If you wish, use your minimum required distribution to replace those securities in your portfolio, thereby establishing a new and higher cost basis. Or, diversify your portfolio by purchasing other securities.
Please contact us to find out how you can benefit from either the One-Step or Two-Step Gift, special opportunities available only in 2007.
Office of Planned Giving
University of Michigan Office of University Development
734-615-2022 • toll free 866-233-6661 • Contact Us
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