Giving to York College
IRA Charitable Rollover extended through 2013!
The American Taxpayer Relief Act of 2012 includes a one-year extension of the IRA charitable rollover (Qualified Charitable Distribution). The provision is not fully retroactive to January 1, 2012, but it does include special transition rules for IRA gifts made in December 2012 and January 2013. The provision expires December 31, 2013.
Principal rules for direct transfers from a traditional or Roth IRA to a qualified public charity are:
Recognizing issues with the late passage of the law, Congress included two special transition rules:
General description: Ordinarily, an IRA owner must report withdrawals as income and pay tax on them, 40% or more in some places once you add federal, state, and local taxes together. Qualifying charitable IRA distribution (or rollover) gifts are not reportable as income, however, so they never create tax for the donor. A donor would have to report a similar gift from any other type of retirement plan as income, and then declare an income tax deduction. Not only would the gift be more complicated to execute than a charitable IRA rollover, but a variety of factors could prevent the deduction from completely offsetting the income, resulting in more taxes owed.
Details about a rollover gift:
To discuss a charitable IRA rollover, please contact Brent Magner at 402-363-5636 or at firstname.lastname@example.org. Seek the advice of your financial planner or accountant before making any decision on a rollover.
The charitable IRA rollover came into being as part of the Pension Protection Act of 2006. The rollover provision expired on December 31, 2007. It was reinstated and extended through December 31, 2009 and then reinstated a second time through December 31, 2011. Since it was first enacted in 2006, thousands of donors have made qualified charitable distributions and taken advantage of this giving option.