Find new way to give
Saturday, September 1, 2007
Upon reaching the age at which an IRA distribution becomes mandatory - 701Ž2 - Bob Goff had a choice: lose up to 35 percent of his distribution to income tax, or use the retirement savings to help young people attend college. He and his wife Phyllis decided on the latter, using Bob’s IRA to help fund the first payment toward a $100,000 scholarship gift.
The Pension Protection Act of 2006 provided the opportunity to use an IRA for charitable giving. In the past, a donor would have had to withdraw money from an IRA taxable distribution, then make a charitable gift. Now, donors can make a charitable distribution directly from an IRA, avoiding the tax issue altogether and substantially increasing the gift’s impact.
Goff, who was student government president before his graduation from SCSU in 1958, is co-founder and co-owner of Goff and Howard, a full service public relations/public affairs firm in Minnesota. He and his wife, Phyllis, live in St. Paul, Minn.