The recently enacted American Taxpayer Relief Act of 2012 brings back, for another year, the popular IRA charitable rollover provision wherein donors age 70½ or older are once again eligible to move up to $100,000 from their IRAs directly to qualified charities without having to pay income taxes on the money. This provision is retroactive to January 1, 2012.
The Community Foundation wants to point out the two following time-sensitive special transition rules incorporated into Act, due to the legislation’s retroactive nature:
· Qualified distributions made before Feb. 1, 2013, may be counted retroactively for the 2012 tax year.
· A taxpayer, who took a distribution from an IRA in December 2012, may make a contribution to a qualified charity before Feb. 1, 2013, and treat the gift as a direct transfer.
The specifics are summarized nicely in the attached piece from Council on Foundations.
