IRA Charitable Rollovers OK! On January 1, 2013, both the House and Senate passed the American Taxpayer Relief Act of 2012. The bill includes a number of provisions that are favorable to philanthropy and charitable giving. One of those provisions that we have been closely watching is the extension of the IRA Charitable Rollover. Several options are now possible:
1. Some donors made Qualified Charitable Distributions (QCDs) from their IRA during 2012 in the hope that the extension of the law would be retroactive. Now, these QCDs are retroactive to January 1, 2012.
2. Those individuals who did not make a QCD in 2012 can do so during January of 2013, and use the charitable deduction for 2012.
3. Some individuals received their Required Minimum Distribution (RMD) from their IRA in December. If those persons transfer all or part of that distribution to charity during January of 2013, they will not need to report that charitable distribution amount as income. In short, December taxable income can be converted to a January charitable gift that qualifies for a 2012 tax deduction.
To take advantage of any of these possibilities by January 31, 2013, you must take immediate action in order to complete the paperwork and the process of making the charitable transfer by that deadline. Contact your IRA custodian as soon as possible.
Mike Jacobs, Planned Giving Officer
United Way of Deschutes County
For more information on these or other topics please call the United Way of Deschutes County office at (541) 389-6507 or email to info@deschutesunitedway.org [mailto:info@deschutesunitedway.org].
