New Law Allows for IRA Charitable Gifts
The signing into law of the "American Taxpayer Relief Act of 2012,” commonly referred to as the ‘”fiscal cliff” bill, has provided individuals 70 ½ or older to make a charitable donation from their IRA for the years 2012 and 2013.
Normally, a distribution from an IRA is taxed as ordinary income. However, the legislation signed into law by President Obama allows individuals to elect for tax purposes a distribution made in January 2013 as made in 2012. Individuals can also opt to make an IRA charitable contribution for the year 2013.
In addition, the new law provides a special election available to individuals who took a distribution from their IRA after November 30, 2012, and before January 1, 2013, and who make a cash gift to a qualified charity before February 1, 2013, to treat the gift as an IRA charitable rollover even though the distribution is not directly from the IRA to charity.
Individuals who qualify under the new law may wish to make a gift to the Church through their parish, the Bishop’s Annual Appeal, the Cathedral Campus Project, a school or other Diocesan ministry.
For more information about how you and the Church can benefit from an IRA Charitable Rollover, contact the parish office or Ryan Flood, the Director of Special Gifts in the Diocesan Office of Stewardship and Advancement. Ryan can be reached (919) 821-9774 or via email at firstname.lastname@example.org.
These helpful tips are only for your information on this change in the IRA tax law and are not to be considered as legal, tax or financial advice. You should consult with your legal, tax and financial advisors to implement the benefits of the IRA charitable rollover law and related matters.