Posted: Wednesday Jan 16, 2013
Jan. 16, 2013
Thanks to the extended charitable IRA legislation, donors can once again make outright gifts using IRA funds without tax complications, according to information distributed by the Saint Vincent College Office of Institutional Advancement.
“For 2012 distributions there is a special provision: if you made a distribution in cash during December 2012, you have until the end of January 2013 to send a contribution in any amount up to $100,000, limited by the amount of your distribution during December 2012,” advised Mr. Edward G. Nemanic, Jr., director of individual giving at Saint Vincent. “You can then treat this contribution as if you had sent it directly to the charity – don’t count it as income, and don’t itemize the contribution. This distribution could have been your required distribution for the tax year 2012.”
If you were waiting on the fiscal cliffhanger, you can still make a Qualified Charitable Distribution during January 2013 – directly from your IRA to the charity – and count it as if the QCD occurred in December 2012, Nemanic said.
For 2013, the QCD is available through the end of the year under normal rules. “This means that you can, if you’re age 70½ or older, make direct distributions from your IRA to a qualified charity or charities, not counting the distribution as income and not itemizing the charitable contribution,” he said. “If you are required to receive minimum distributions from your IRA and you do not need the money for personal use, consider using those funds as a charitable gift. While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount.”
Nemanic said he would be available to discuss this important legislation with alumni and friends who have questions. He can be contacted at 724-805-2948 or firstname.lastname@example.org.
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