Congress Approves 2-year Retroactive IRA Charitable Rollover Extension
The American Taxpayer Relief Act of 2012 has been approved by Congress and it includes a two-year retroactive extension of the IRA Charitable Rollover provision that lapsed on December 31, 2011. Specifically, the new law:
- retroactively reinstates the Rollover from 2012 and allows any otherwise eligible gifts made after December 31, 2012 and before February 1, 2013 to be treated as a 2012 donation.
- specifies that any portion of a distribution from an IRA to a taxpayer made after November 30, 2012 and before January 1, 2013 may be treated as a qualified charitable distribution for purposes of the IRA Charitable Rollover, and
- reinstates the IRA Charitable Rollover for all of 2013 and will now expire at the end of this year, on December 31, 2013.
What is an IRA Charitable Rollover?
The law uses the term “qualified charitable distribution” to describe an IRA charitable rollover. A qualified charitable distribution is money that individuals who are 70-1/2 or older may direct from their traditional IRA to eligible charitable organizations. The provision has a cap of $100,000 for charitable distributions from individual IRAs each year. Individuals may exclude the amount distributed directly to an eligible charity from their gross income.
In other words, if you wish to make a charitable contribution to The Plymouth Harbor Foundation, and/or another favorite charity, you may rollover up to $100,000 directly from your IRA to the charity and you won’t have to claim the amount you rollover as income.
Want to know more about this and other 2013 tax law changes?
Please Join Us: Tuesday, January 22, 2013 — 3:00 p.m. in the Card Room.
TOPIC: IRA Charitable Rollover Extension and 2013 Tax Law Changes
Presented by: Carla Plush Smith, CPA and Plymouth Harbor Foundation Trustee
Becky Pazkowski, Vice President of Philanthropy
Foundation Forum: Hosted by The Plymouth Harbor Foundation, Bill Johnston, Chair
Please call Sandy Taylor at ext 511 for more information and to register.