When the American Taxpayer Relief Act of 2012 finally became law last week, new opportunities opened for charitable gifts from IRA accounts in 2013. If you qualify, you also have the chance between now and Feb. 1, 2013, to make a gift to an eligible charity that counts in 2012.
As in past years, tax-free distributions of up to $100,000 (per taxpayer, per year, if you are 70 1/2 or older) are permitted under the IRA charitable rollover provision. Your can support a Community or Field of Interest Fund, establish or add to a Community Catalyst Fund or support our Community Leadership efforts with a general gift to the Community Foundation. (The legislation excludes private foundations and Advised Funds.)
Since the law was signed after the end of 2012, this charitable gift may be counted retroactively for 2012 under certain conditions. Talk with your professional advisor or IRA administrator about the options below and other rules that may apply.
- Qualified distributions made by Feb. 1, 2013, may be counted retroactively for the 2012 tax year.
- A taxpayer who took a distribution from an IRA in December 2012 may make a contribution to a qualified charity before Feb. 1, 2013, and treat this as a direct transfer.
Between now and Dec. 31, 2013, you also can make a charitable gift that will qualify under the law. This can be a great way to support your favorite cause and avoid taxes on a required distribution that you may not need for your living expenses. Contact Erin Stephenson to find out more at 327-3805 or by e-mail