IRA Charitable Rollover exemption
Great news! The IRA Charitable Rollover exemption has returned for 2012 and 2013!
As part of the recent American Taxpayer Relief Act of 2012, donors who are 70½ or older are again eligible to make an IRA charitable rollover.
- You may give up to $100,000 from their IRAs directly to qualified charities, such as Medical Teams International, without having to pay income taxes on the funds.
- IRA charitable rollovers count toward a required minimum IRA distribution.
- IRA charitable rollovers are not subject to the charitable giving limit of 50% of adjusted gross income.
- If you took a distribution in December, 2012, and donate to a qualified charity through January 31, 2013, you may be able to reduce your taxable income.
Details for 2013
Throughout the rest of 2013, you may make an IRA charitable rollover, without penalty, to a qualified charity such as Medical Teams International. An IRA charitable rollover is a convenient way to give, it counts toward your required annual IRA distribution, and may help to reduce your income taxes.
Congress recognized the issues with this late extension for 2012 and provided two special transition rules:
- Qualified distributions made by 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 this as a direct transfer.
How to Act
Getting started is easy. Simply contact your IRA Custodian, which is usually the financial services company that manages your IRA. Your IRA Custodian should be able to handle the entire process for you. If you wish further information from Medical Teams International, contact Douglas Bright at 503.624.1210, or email him at email@example.com.
Medical Teams International does not provide tax advice. We encourage you to contact your professional tax advisor.