Charitable IRA Rollover Gifts
Time's Running Out on the Charitable IRA Rollover
On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012. This legislation enables individual retirement account, or IRA, owners age 70½ or older to directly transfer up to $100,000 per year, tax free, to charity.
This special charitable IRA rollover provision of the tax law is available through December 31, 2013, at which time it will expire.
Will Congress extend the rollover option through 2014?
And if so, when?
As of this writing, it's simply impossible to say. The good news is that the IRA charitable rollover option is still available through December 31, 2013. Please consider this taxwise option—while it still exists—if it fits into your financial plans for 2013.
You May Make a Charitable IRA Rollover Gift If:
- You are age 70½ on or before December 31, 2013
- You make your gift on or before December 31, 2013
- You transfer funds directly from a traditional IRA or Roth IRA, and your total of IRA gifts for a given tax year is $100,000 or less
- You transfer the gift outright—on or before year's end—to one or more public charities, but not to supporting organizations, donor advised funds, charitable trusts or gift annuities.
This provision only applies to gifts from IRAs and not from 401(k) plans or other tax-favored retirement planning vehicles
How to Make a Charitable IRA Rollover Gift to Catholic Relief Services:
- First, notify CRS of your plans. Contact our Donor Services department:
- Next, contact your IRA custodian to authorize your donation. Here is a sample letter of instruction to send to your IRA custodian.
CRS urges you to review any important decisions involving your IRA funds with your professional advisors.
The IRS has released guidelines for IRA charitable donations for 2012 and 2013, including reporting requirements. You can review the guidelines here.
We're here to help:
Richard Balmadier, Director of Planned Giving
Phone: 1-800-235-2772; at the prompt, dial extension 7251