On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. One provision of this Act restores the tax-free individual retirement account (IRA) charitable rollover for 2010 and permits its use in 2011. This Act is retroactive to January 1, 2010, so donors who previously made 2010 IRA rollovers to Hillsdale will qualify under this new legislation.

If you own an IRA and are over age 70 1/2, you may transfer up to $100,000 directly from your IRA to a qualified charitable organization, such as Hillsdale College. A 2010 or 2011 transfer also fulfills part or all of your required minimum distribution (RMD) which may reduce your taxable income in either or both years.

Because of the late passage of this bill, 2010 IRA rollovers may be made as late as January 31, 2011. 2011 rollovers may be made at any time during 2011.

Below is a sample letter for your IRA custodian.

If you have questions or require more information, please call our Office of Gift and Estate Planning at (800) 334-8904.
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Sample Letter for IRA Custodian

Dear IRA Custodian:

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, effective from January 1, 2010 to December 31, 2011, permits a rollover directly from an IRA to a qualified public charity. As the owner of IRA account #_________________ that is in the custody of your organization, I request that you transfer the sum of $________________ to Hillsdale College, 33 E. College Street, Hillsdale, MI 49242. The Treasury Tax ID Number of Hillsdale College is 38-1374230.

It is my intention to make a Qualified Charitable Distribution (QCD) to Hillsdale College from my IRA, which may fulfill part or all of my IRA required minimum distribution for this year.

This letter is sufficient authorization for you to make this QCD. However, if you require any further information, please notify me as soon as possible.

Sincerely,

(name of IRA owner)