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Charitable IRA Rollover: Reinvestment in Community

Dale Zadina has lived and farmed in Valley County all of his life. Dale’s grandfather homesteaded in the area, and the land has been in the family for more than 100 years.

“My vision for the future is that Ord is a hub for the larger surrounding area.  And I think we’re on the road to getting there,” said Dale.

Dale & Janie

Dale & Janie Zadina

He and his wife, Janie, have a deep commitment to their community.  Janie worked for many years with the Ord Chamber of Commerce, Valley County Economic Development and the Valley County Health System Nursing Home. Dale serves on the Fund Advisory Committee of the Valley County Community Foundation Fund.

Recently, Dale made a significant gift to the Fund’s unrestricted endowment using a Charitable IRA Rollover.

“I am lucky enough to be in a position where I can transfer a portion of my IRA, and 100 percent of the value will be guided toward the endowment,” Dale said.

“Many people don’t stop to realize that they have accumulated savings in their retirement plans tax-free.  But when taken out there is a tax liability.  For example, a $10,000 IRA distribution may only be worth $7,000 after taxes. I’d rather give $10,000 than $7,000.  The tax-free Charitable IRA Rollover is a terrific way to increase the value of your gift to a worthy cause,” Dale said.

“And the process is very easy. I just notified my broker, said how much I wanted to transfer, signed the paper and it was done.”

Dale and Janie are part of a growing number of Nebraskans who, thanks to decades of deliberate saving, are able to use the Charitable IRA Rollover as a tax-wise tool to give back to their community.

“Our new school and new hospital are anchors in our community.  The original, beautiful courthouse is being renovated. A water park and a new ballpark would draw a lot of people to Ord.  These are the kind of projects that need to be funded with contributions to help lower the tax load.

These days Dale just “plays at farming a few hundred acres.”  Janie continues to volunteer at the Chamber and Economic Development Office and is also a member of the Valley County Community Foundation Fund Advisory Committee.

Dale and Janie believe that there comes a time when focusing on what really matters – family and community – is the most important thing to do. “If you don’t do it today, it might be too late.”

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The American Taxpayer Relief Act of 2012 extends the Charitable IRA Rollover through December 31, 2013.  Here is how it works.

— The law allows those age 70 ½ and older to transfer up to $100,000 from an IRA to a qualified charity tax free.  If married, each spouse can transfer up to $100,000 from his or her IRA.
— You may direct gifts from your IRA to a qualified charitable organization in any amount up to $100,000 throughout 2013.
— The gift must be made directly from the custodian of your IRA to the Nebraska Community Foundation for the benefit of your community’s or organization’s affiliated fund.
— Your tax-free rollover gift will be excluded from your gross income.
— Your gift can count toward your required minimum distribution.
— Gifts to life income plans, donor-advised funds, supporting organizations and most private foundations do not qualify.

For more information contact Jim Gustafson, Gift Planning Director for the Nebraska Community Foundation at (402) 323-7341 or jgustafson@nebcommfound.org.

Article by Nebraska Community Foundation.

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