On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 into law, extending the provision until 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 70½ 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.
What is the new expiration date of this provision?
This provision is still time-limited. It applies only to qualified charitable distributions made before
January 1, 2014.
Can donors still take advantage of the IRA charitable rollover for 2012?
Yes. Although the most recent extension was enacted on January 2, 2013, it was retroactive, dating back to January 1, 2012. The extension allows individuals who received an IRA distribution in December 2012 to elect to count that distribution (or a portion thereof) as a 2012 IRA charitable rollover if the individual transfers the amount in cash before February 1, 2013, to an eligible charity. Additionally, the extension allows donors to make distributions directly to eligible charities before February 1, 2013, and elect to have such distributions treated as qualified charitable distributions in 2012. Recognizing that the extension of the IRA charitable rollover provision occurred in 2013, this change may be a benefit to donors who would like to take advantage of the rollover in both 2012 and 2013.
We recommend that you contact your IRA Custodian and your financial advisor for more information regarding your specific details on this tax wise way to make charitable gifts. Distributions to the Wayne State Foundation must come directly from your IRA Custodian.
For more information, please feel free to contact:
Director of Planned Giving