The Charitable IRA Rollover is back for 2012 and 2013!

The American Taxpayer Relief Act of 2012 (ATRA) enacted January 2, 2013, extended the IRA charitable rollover rules which were originally put in place in 2006, and expired at the end of 2011. This provision allows individuals who are 70 ½ or older to transfer (or "rollover") up to $100,000 per year from their IRAs to most charities if the transfer is a "qualified charitable distribution" and certain rules are followed. Not only can taxpayers use the charitable rollover for 2013 distributions, but distributions from IRAs made after November 20, 2012 and before January 31, 2013 may be treated as a charitable IRA rollover for 2012, if that distribution is made in cash to charity before January 31, 2013. Thus, you could give up to $200,000 to charity from your IRA in 2013 (with $100,000 treated as given in 2012) if you act quickly. Contact us or your IRA plan administrator to learn more.

Expiring Tax Provisions for Individuals

The failure of the "Super Committee" to agree on deficit reduction makes even more uncertain the fate of a number of tax provisions that are scheduled to expire at the end of 2011. Included in that list for individuals: the contribution of up to $100,000 from an IRA directly to charity by an individual at least age 70 ½; enhanced deductions for contributions of conservation easements; reduction in payroll taxes (although this may be extended separately); increased Alternative Minimum Tax exemption; a number of credits such as the adoption credit, energy property credit, first-time homebuyers credit, increased deduction for qualified tuition expenses; and exclusion of 100% of gain on certain small business stock. If any of these apply to your personal situation, act now to take advantage of these tax provisions before the end of the year.

Favorable Tax Treatment of Contribution of IRA to Charity May End 12-31-2011

Unless Congress extends this benefit, the ability of taxpayers at least age 70-½ to contribute an IRA up to $100,000 in value directly to a public charity without having to report the IRA as taxable income followed by a charitable deduction (which does not offset the income 100%) will end as of December 31, 2011. Such a contribution will also satisfy the taxpayer’s Minimum Required Distribution for the year. If you are considering taking advantage of Code section 408(d)(8)(F), be sure to get the contribution started well before the end of the year.