IRA Law Permits Tax-Free Distributions to Princeton
An important gift opportunity for donors age 70½ or older
Donors who are age 70½ or older can now make gifts to Princeton and other charities directly from their IRAs, without including the IRA withdrawal in their taxable income. This provision, available now through December 31, 2009, was passed into law as part of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008.
IRA gifts under the new law are most appropriate for donors who:
Do not need the income from their Minimum Required Distribution.
Have a taxable estate and wish to avoid the "double taxation" of inherited IRAs.
Do not itemize their deductions on their tax returns.
Are subject to the Alternative Minimum Tax, or whose other tax deductions or exemptions are phased out because of high income.
The Office of Gift Planning provides the following downloadable PDF documents for more information and to help you decide whether this type of gift is right for you:
If your IRA Administrator requires evidence of the University's IRC Section 501 (c) (3) status to process your IRA gift, please download the IRS Determination Letter. Princeton's tax ID number is: 21-0634501.
If you have questions, please call Ron Brown ’72, Director of Gift Planning, at 609.258.3009 or email 1746soc@princeton.edu.
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