IRA Charitable Rollover Extended for 2013
We have great news if you're at least age 70½. You can again use your IRA distribution to make a gift and count it for the 2012 tax year if you act by Jan. 31, 2013. If you miss the deadline, you can still make your gift with your IRA distribution, and count it for the 2013 tax year.
Congress afforded philanthropists and nonprofits this rare opportunity when it extended the IRA Charitable Rollover for 2012 and 2013 by passing The American Taxpayer Relief Act of 2012. Its special rules and provisions provide two ways you can take advantage of these tax benefits:
- If you received an IRA distribution in December 2012, you can convert that taxable income into a tax-deductible donation by making a cash gift by the January 31 deadline. The IRS will treat your gift as if you made a direct IRA charitable rollover and so you’ll avoid tax on the amount of your gift. Or,
- You can make your gift with a qualified charitable IRA distribution in January 2013. The IRS will treatthe gift as if you made it in 2012.
Also, if you made a charitable distribution directly from your IRA in 2012, you’re in luck. The IRS will treat that gift as a qualified charitable distribution.
We always recommend that you consult your tax and estate-planning advisor when making a gift with appreciated assets and other holdings.
Please also allow us to be of assistance. If you have questions, email Tom Foley at email@example.com. You can also call him at (312) 261-3958 or toll-free at (888) 658-8632.