Charitable Donation of pension

[cpabsd]

The pension act of 2006 allowed an individual to donate up to $100,000 directly from retirement plan to a charitable organization. Someone donated in this fashion to my church. The church received a phone call saying that they needed to complete a specific form in order for the individual to receive deduction. The church had previously sent a letter of acknowledgement of receipt. Does anyone know what form this would be? Any help is appreciated.

[grandmabee]

The pension act of 2006 allowed an individual to donate up to $100,000 directly from retirement plan to a charitable organization. Someone donated in this fashion to my church. The church received a phone call saying that they needed to complete a specific form in order for the individual to receive deduction. The church had previously sent a letter of acknowledgement of receipt. Does anyone know what form this would be? Any help is appreciated.

A PHONE CALL from whom? I thought there was no deduction, just not taxable RMD

[cpabsd]

The phone call was from the tax preparer who works for Liberty Tax Service. You are correct - no taxable income but no deduction either. Thanks for helping me think this through. The brain is a bit tired.

[MAMalody]

The pension act of 2006 allowed an individual to donate up to $100,000 directly from retirement plan to a charitable organization. Someone donated in this fashion to my church. The church received a phone call saying that they needed to complete a specific form in order for the individual to receive deduction. The church had previously sent a letter of acknowledgement of receipt. Does anyone know what form this would be? Any help is appreciated.

Actually, this only applied to IRAs. The individual may make a tax-free "qualified charitable distribution" of up to $100,000 from an IRA to a church or other charity. There are three basic rules that apply here.

1. A qualified charitable distribution is any distribution from an IRA directly by the IRA trustee to a charitable organization, including a church, that is made on or after the date the IRA owner attains age 70 1/2.

2. A distribtuion will be treatd as a qualified charitable distributin only to the extent that it would be includible in taxable income without regard to this provision.

3. This provision applies only if a charitable contribution deduction for the entire distribution would be allowable under present law, determiend without regard to the generally applicable percentage limitations. For example, if the deductible amount is reduced because the donor receives a benefit in exchange for the contribution of some or all of his or her IRA account, or if a deduction is not allowable because the donor didn't have sufficient substantiation, the exclusion is not available with respect to any part fo the IRA distribution.

I hope this helps.

Mike