Legislation Creates Opportunity to Help UW-Stout

Legislation Creates
Opportunity to Help UW-Stout

On Aug. 17, President George W. Bush signed into law the Pension Protection Act of 2006. This legislation offers the opportunity for UW-Stout alumni and friends to support the university in a new way. For the first time, the law allows people age 70½ or older to transfer IRA (Individual Retirement Account) assets to their favorite charities completely tax free.

Prior to passage of the Pension Protection Act, individuals who wanted to make charitable contributions of traditional IRA assets often suffered negative tax consequences. Even if funds were transferred directly to a public charity, the donor still had to report them as ordinary income, taxable at regular rates. But the new IRA rollover provision now allows donors age 70½ or older to make “qualified charitable distributions” of up to $100,000 per year from regular or Roth IRAs. The provision expires Dec. 31, 2007.

If you would like additional information about making a charitable distribution from your IRA to the Stout University Foundation, contact the development office at 715-232-1151.

Outlook Winter 2006 v3