Tax Act Gives Donors With IRAs Opportunity -- for January Only

January 9, 2013

Special opportunity for donors with IRAs -- January only

 

The American Taxpayer Relief Act of 2012 has several provisions related to charitable giving from Individual Retirement Accounts (IRAs) for donors over age 70½. If you made a December 2012 IRA withdrawal (up to $100,000), you can treat a charitable gift made in cash any time after the withdrawal and through January 31, 2013 as a Qualified Charitable Distribution from your IRA. During January 2013, you can make a charitable contribution directly from your IRA account (up to $100,000) and elect to treat this as a withdrawal made on December 31, 2012 as long as the total Qualifying Charitable Distribution for 2012 does not exceed $100,000. We encourage donors making these special contributions to the Forest Society to ensure that they are received by the Forest Society on or before January 31st.

If you are a donor who made charitable gifts directly from an IRA account during 2012, these gifts will be treated for tax purposes as a 2012 Qualified Charitable Distribution of the amount donated (up to a $100,000 limit). During the 2013 tax year, you can again make charitable gifts up to an aggregate of $100,000 and treat them for tax purposes as a 2013 Qualified Charitable Distribution. Currently, the IRA charitable gift provisions expire on December 31, 2013.

Forest Society members who think that these provisions may provide a beneficial approach for charitable giving are urged to consult a qualified tax advisor prior to making a gift. This information is provided for educational purposes only.