Marian High School has announced that the Tax Relief Act of 2010 has extended the exclusion from gross income of otherwise taxable distributions from IRA accounts that are paid to a qualified charity such as the school.
More commonly known as "qualified charitable distributions" or QCD's, up to $100,000 of such distributions to the school can be excluded from a taxpayer's gross income.
This provision allows taxpayers to avoid the more cumbersome and often more costly method of taking an IRA withdrawal from their account and then receiving a charitable deduction for the donation of the funds to the school.
Taxpayers must be 70 in order to make the QCD's and such distributions must be otherwise taxable.
As an added benefit, such distributions count toward satisfying the taxpayer's annual required minimum distribution (RMD) from their IRA account.
John M. Nonnemacher, CPA from the Hazleton office of the accounting and consulting firm of Snyder and Clemente has been assisting the school and donors with the requirements related to the distributions.
He stated "these tax-free distributions to Marian High School are a wonderful opportunity for taxpayers to satisfy their RMD requirements and at the same time allow our local youth to receive a top quality education. These tax free distributions to the school provide a unique tax and estate planning opportunity. I would encourage eligible taxpayers to consider such contributions to the school before the provisions expire at the end of 2011".
Sue Ann Gerhard, director of development at the school, echoed Nonnemacher's comments by adding "there is a common misconception that many of the special provisions in our Federal tax code only benefit wealthy taxpayers. Here is an excellent income tax and estate planning opportunity for all eligible taxpayers, even those with modest required minimum distributions. We would gratefully accept any contribution, no matter how small, because this is a "win-win" situation for both the taxpayer and our school."
Taxpayers interested in designating their qualified charitable distributions for the benefit of the school can contact Gerhard (570-467-0641) for additional information. She stressed that all information relating to such participants will be held in strictest confidence.