Tax Benefits from IRA Contributions

If you are 70 ½ or over, please consider giving to National Dance Institute from your IRA this season and receive additional tax benefits!

You can give part, or all, of your gift from your IRA, and can make early payments on multi-year pledges.

The Pension Protection Act of 2006 (H.R. 4), signed into law by President Bush in 2006, was recently extended through 2009. This act permits tax-free “outright” distributions from Traditional Individual Retirement Accounts (“IRAs”) to 501(c) (3) nonprofit organizations, including National Dance Institute.

How to make a contribution to NDI through your IRA:

  • Instruct your IRA administrator to transfer IRA funds directly to NDI.
  • Please notify NDI in writing of the intended transfer of IRA funds. Emails are permissible.
  • Please contact Mary Walker, Development Director, at 212.226.0083 or mwalker@nationaldance.org, if you require further assistance.

In order for your gift to qualify as a non-taxable deduction, your IRA distribution must meet the following requirements:

  • You must be at least 70 ½ years old.
  • The distribution must be made in 2008 or 2009.
  • The IRA custodian (“Trustee”) must make a distribution directly to NDI.
  • The gift must come from an IRA, including traditional or Roth, except SEP and SIMPLE IRAs.
  • It must be deducted from taxable income at the time of contribution, and not before.
  • The distribution must be less than $100,000 per tax year. (There is no minimum distribution under the Pension Protection Act, as long as your IRA custodian permits small distributions.)

How this impacts you:

  • The contribution will apply against your required minimum distribution (“RMD”).
  • This gift will not be included in your calculation of taxable income.
  • This gift may not also be taken as a charitable deduction.

As always, we ask that you consult with your financial and tax advisors before taking advantage of this opportunity.  Thank you in advance for your generous contribution, which will help bring the joy and power of the arts to thousands of New York City public school children.

 

Why I Give.
NDI inspires & transforms:

“In the beginning I was really nervous. Now I feel confident and proud. Thank you NDI for giving me courage.”

Michael, PS 1

Midsummer Night's Dream Gala.
NDI's Annual Gala

Thursday, April 30, 2009
Nokia Theater
44th & Broadway, NYC
More info