IRA Rollover Legislation Passed

Under the Pension Protection Act of 2006, you can make a gift to Penn State using funds transferred directly from your individual retirement account—without paying taxes on your distributions.

Gifts can be made from a traditional IRA or Roth IRA—but not pension, profit-sharing, or other forms of retirement funds.

You may contribute funds this way if:

• You are age 70 ½ or older
• The gift is not more than $100,000 per year
• The gift is outright and not to a gift annuity or charitable remainder trust
• You make your gift on or before Dec. 31, 2007
• You transfer funds directly from a traditional IRA or Roth IRA to Penn State, but not a supporting organization or donor advised fund

It is important to keep in mind that under this legislation you may not receive a personal benefit back from the University in exchange for your gift. (For example, your gift could not be designated to cover your Nittany Lion Club membership.)

A rollover gift (or payment of a pledge) from your IRA allows you to avoid paying income tax on the withdrawal, but it does not afford you a charitable tax deduction.

If this type of asset is an effective way for you to make a gift to Penn State, talk with your advisors and then contact your IRA custodian to transfer your desired gift amount to Penn State.

Contact a Penn State planned giving professional to discuss this giving opportunity further at plannedgiving@psu.edu or 1-888-800-9170.