PPA Fast Facts*

• The donor must be 70 ½ at the time of the gift
• The gift must be from a traditional IRA or Roth IRA [it cannot be from a 401(k) or 403(b)]
• The gift is transferred directly from the IRA plan administrator
• The gift is limited to $100,000 per taxpayer per year (for gifts over $100,000, the remaining amounts must be organized as income)
• The gift must be outright (gifts made to donor-advised funds and split-interest gifts such as annuities do not qualify)
• The gift must be made to an eligible charitable organization, such as Berea College
• The gift must be a “qualified charitable distribution” or otherwise taxable if not for the PPA provisions
• Provisions have now been extended through December 31, 2009

*This information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.

Donors should consult with their tax advisors or financial planners to determine how the PPA may impact their specific situations.

Congress recently enacted an extension to the law that allows donors who meet certain criteria to make tax-free transfers of their IRAs to qualifying charities. Donors who are 70 ½ or older may transfer up to $100,000, avoiding the resulting increased income that would have occurred prior to the Pension Protection Act (PPA). (Before the PPA, a donor was required to withdraw proceeds in order to make a subsequent charitable donation.)   More >

How to donate your IRA:

1. Fill out this form in four easy steps.
2. Print the customized letter (generated from the completed form).
3. Sign the letter and mail it to your plan administrator

If you have questions, contact Amy Shehee, Director of Gift Planning, at amy_shehee@berea.edu or 800-457-9846 ext. 3002.