If you utilize distributions from an IRA to make charitable gifts, the law has some good news for you. As you know, Congress passed The American Taxpayer Relief Act of 2012 on January 1, 2013 – the legislation meant to avoid the so-called “fiscal cliff.” The passing of this legislation extends the IRA Charitable Rollover provision for 2013.
What does this mean for you? Simply put, individuals age 70½ or older are once again eligible to transfer up to $100,000 from their IRA accounts directly to qualified charities without having to pay income taxes on that money.
With this rule in effect, an individual can make a qualified charitable contribution by December 31, 2013. Even more, this distribution can count towards the IRA’s RMD (required minimum distribution) and do not show up on the 1040 form as part of the taxpayer’s gross income.
Contact the PinnacleHealth Foundation office at (717) 231-8080 with any questions, or ask your financial planner about the details on new tax laws.