Give to NEC: Make a Difference
  • Give to NEC
  • Alumni
  • College Admission
  • Youth and Adult Studies
  • Concerts

Other Tax-Wise Gifts

Retirement Plan Assets

Until recently you may not have considered your retirement assets as options for giving to NEC. But if you are at least 70 ½ years of age, changes in federal law may make it advantageous for you to name NEC the beneficiary of your IRA assets while you are still alive to enjoy the results of your philanthropy.

Thanks to the new Pension Protection Act of 2006, you can make gifts of IRA assets to NEC and other charities free of deferred-income taxes. This opportunity is only available for 2006 and 2007.

IRA assets can be taxed heavily if bequeathed to family or friends. Because the PPA expires December 31, 2007, for longer term financial planning, it may be most advantageous to direct IRA assets to NEC and other charitable interests, and to direct other assets to family and non-charitable legatees.

The following criteria apply to gifts made under the Pension Protection Act of 2006:

  • Gifts can be made from both regular and Roth IRAs.
  • You must be 70 ½ on the day the gift is made.
  • The funds must be transferred directly from the IRA custodian to NEC.
  • You can make gifts of up to $100,000 per year in the 2006 and 2007 tax years. The PPA of 2006 expires on December 31, 2007.
  • The amount of the rollover will be excluded from your gross income in the year of the gift.
  • The amount of the rollover will count as all or part of your required minimum distribution in the year of the gift.
  • An IRA/Roth rollover to charity can be made by all taxpayers regardless of whether or not they itemize their deductions.
  • No charitable income-tax deduction can be claimed for the rollover.
  • The rollover cannot be used to establish a life income gift such as a charitable gift annuity or charitable remainder trust.
  • The rollover may not be made to a donor-advised fund or a supporting organization.
  • Distributions may not be made from Simple IRAs, 401(k)s or 403(b)s.
  • Distributions are includable in the donor’s state and/or local taxes, and may or may not qualify for an offsetting charitable deduction, depending on state and local laws.
  • The rollover will be most attractive if you meet one or more of the following criteria:
  • You give at the 50% deduction limit.
  • Your income level causes the phaseout of your exemptions.
  • You do not itemize deductions.
  • Your income from a distribution could cause a higher tax on Social Security payments.
  • You do not need income from the minimum required IRA distributions.

For More Information
If you would like to discuss how you can benefit from making a gift using IRA or other retirement plan assets, please contact your personal advisor or tax planner or call:

Marian Alper
Director of Major Gifts
New England Conservatory
290 Huntington Avenue
Boston MA 02115
(617) 585-1196
MAlper@newenglandconservatory.edu