Unique donation opportunity through the Pension Protection Act

Recent legislation passed by Congress and signed by President Bush can help AMSAT raise the funds needed to build Eagle.

The law, called the Pension Protection Act (PPA), includes
a provision enabling AMSAT to raise substantially more money than might have been previously possible.  However, time is short to take full advantage of this unique opportunity.

Serious construction work must be funded this year to have Eagle ready to orbit by the target of 2009.

Basically, here's the story on how the new law can help Eagle fly!

The PPA provides that U.S. taxpayers with IRAs who have reached the age of 70-1/2, may contribute to qualified charities, part or all (up to $100,000 per year or $200,000 for married couples filing jointly), of the money they must annually withdraw from their IRAs.

Thus, many AMSAT members and other supporters of the amateur radio space program have a marvelous opportunity to keep the Eagle project on track.

If you must withdraw a certain amount from your IRA each year, there is a big advantage to making such withdrawals as direct contributions to AMSAT rather than merely receiving the distributions and then contributing in the usual manner. Under PPA, the amount you contribute directly is NOT counted as income and thus may put you into a lower tax bracket. It may also reduce  the percentage of your Social Security income subject to taxation.

Key provisions of the new legislation to keep in mind:

1. Donors must hold either a conventional or Roth IRA.

2. Donors must be at least 70-1/2 years of age.

3. Contributions must be made directly from the IRA to the charitable organization not to a donor- advised fund, private foundation, gift annuity or trust.

4. Donations may be made this year and next only, and must be made by December 31, 2006 and December 31, 2007.

5. The maximum amount a contributor may donate each year is $100,000.

6. Direct contributions to qualified charities from IRAs, in accordance with the PPA provisions, are NOT counted as taxable income.

If you are 70-1/2 or older and have an IRA, you are in a position to take advantage of this potential windfall for the Eagle project. AMSAT urges you to first check with your tax advisor for specifics regarding your individual situation, then ask your IRA custodian to transfer to AMSAT part or all of
what you are required to withdraw. Be sure to have this transfer completed before December 31st.

Let's all of us do our part to get Eagle into orbit.

Have your IRA custodian call the AMSAT office to get information on how to transfer your contribution. The number 301-589-6062. Office hours are 10 AM to 6 PM EST.

BIll, W3XO

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