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Inside This Issue

Inside This Issue
Market Challenges Affect Estate Plans Too
With IRAs Age Has Its Privileges
Secure Your Retirement Income While Making A Gift

Mission Statement

The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disaster and help prevent, prepare for and respond to emergencies.

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With IRAs Age Has Its Privileges

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Last fall Congress extended the law allowing people who have Individual Retirement Accounts – and who are age 70½ or older – to make gifts through their IRAs. However, this opportunity expires at the end of 2009. Up to $100,000 per IRA owner can be contributed.

The American Red Cross has received many vitally important gifts from IRAs since this technique first became available in 2006. Why are IRA gifts attractive to donors? For many of our supporters, IRAs are their most practical resource for supporting Red Cross programs. Some say they have no need of their required annual distributions and would prefer that they go to a worthwhile cause. Amounts the Red Cross receives will be free of income taxes and will count as required IRA distributions. They also are not counted as income, so they lower your total income and will not affect your deductions nor be affected by deduction reductions. Making IRA gifts is easy. Eligible donors should contact their IRA trustee or custodian and notify our office, so we may ensure proper transfer and receipting of the gift for 2009.

Note: A law has recently been passed that suspends the required minimum distributions from Individual Retirement Accounts and defined contribution plans for 2009. IRA gifts to the Red Cross in 2009 may still be an appropriate way to accomplish your charitable and estate planning objectives. We would be pleased to talk with you and/or your advisor to see if a gift from your IRA in 2009 makes sense for you.

Are you too young to make an IRA gift? Or do you participate in some other type of retirement plan? People of any age can name the Red Cross as partial or 100% death beneficiary of an IRA, 401(k) or 403(b) plan or other retirement account and avoid both income taxes and “death taxes” that may be payable by your heirs. You also can leave your retirement account to a trust that will pay income for life to a spouse or other family member, with later benefit for Red Cross programs.

Are any of these ideas of further interest to you? If so, please contact the Gift Planning Office at 1-800-797-8022, ext. 5, or log on to

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© Copyright 2005 The American National Red Cross. All Rights Reserved.

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The articles in the issues of the Legacy newsletters are for general illustration purposes only. Information, Gift annuity and tax rates were current as of the time of publication. There can be no guarantee that such information will continue to be accurate in the future. Interested Donors should check with the Gift Planning Office for current rates and deduction amounts before completing their gifts. Calculations of tax deductions will vary based on applicable federal discount rates, which change on a monthly basis. The American National Red Cross is not engaged in rendering legal or tax advisory service. For advice or assistance in specific cases, the services of an attorney or other professional advisor should be obtained. Certain links in this site connect to other Web sites maintained by third parties over whom the American National Red Cross has no control. American National Red Cross makes no representations as to the accuracy or any other aspect of information contained in other Web sites.