IRA Charitable Rollover
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| IMPORTANT NEWS ABOUT THE CHARITABLE IRA ROLLOVER |
On January 1, 2013, Congress enacted the American Taxpayer Relief Act of 2012, H.R.8., which extends the Charitable IRA Rollover through December 31, 2013. This means that donors age 70 and ½ or older can ask their IRA custodian to transfer up to $100,000 in 2013 to a public charity. The transfer will be a totally tax-free transfer to the public charity and thus equivalent to a 100% charitable deduction which is not subject to the normal charitable giving limit of 50% of adjusted gross income. There is of course no separate charitable deduction for the tax-free transfer to the public charity.
There is also a special opportunity in January 2013 to make a 2012 Charitable IRA Rollover gift if you received an IRA distribution in December 2012. Because the Congress did not extend the Charitable IRA Rollover provision during 2012, the Fiscal Cliff legislation also states that donors may treat an IRA distribution made after November 30, 2012 as a 2012 Charitable IRA Rollover gift if the recipient of the December distribution makes a charitable gift of the December distribution to a qualified charity before February 1, 2013.
This means that if you received an IRA mandatory distribution or other distribution during December of 2012, you may choose to make a charitable gift in January of 2013 to Vegas PBS and it will be treated as a 2012 Charitable IRA Rollover gift. The normal rules apply: the donor must be 70 and ½ and the amount must be $100,000 or a lesser amount and the gift must be made to a public charity.
If you would like to take advantage of this Charitable IRA Rollover extension and make a gift to Vegas PBS with your IRA December 2012 distribution, please call Diana Morgan, Major Gifts Officer, at 702-799-1010, ext. 5415 or e-mail e-mail.
As always, please consult your attorney and tax advisors when considering such matters. This information is not intended as specific legal or tax advice.
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Excerpt from H.R.8, the "American Taxpayer Relief Act"
SEC. 208 EXTENSION OF TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR CHARITABLE PURPOSES
(a) IN GENERAL —Subparagraph (F) of section 408(d)(8) is amended by striking “December 31, 2011” and inserting “December 31, 2013.”
(b) EFFECTIVE DATE; SPECIAL RULE —
(1) EFFECTIVE DATE —The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2011.
(2) SPECIAL RULES .—For purposes of subsections (a)(6), (b)(3), and (d)(8) of section 408 of the Internal Revenue Code of 1986, at the election of the taxpayer (at such time and in such manner as prescribed by the Secretary of the Treasury)—
(A) any qualified charitable distribution made after December 31, 2012, and before February 1, 2013, shall be deemed to have been made on December 31, 2012, and
(B) any portion of a distribution from an individual retirement account to the taxpayer after November 30, 2012, and before January 1, 2013, may be treated as a qualified charitable distribution to the extent that—
(i) such portion is transferred in cash after the distribution to an organization described in section 408(d)(8)(B)(i) before February 1, 2013, and
(ii) such portion is part of a distribution that would meet the requirements of section 408(d)(8) but for the fact that the distribution was not transferred directly to an organization described in section 408(d)(8)(B)(i).
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