IRA Rollover 1. CONTINUATION The new law continues the IRA rollover for 2012 and 2013. This means that if you are 70½ or older, you can make gifts to charity directly from your IRA in 2013. Your gift will help you meet your annual distribution requirements and you will not have to pay tax on the amount given from your IRA to charity. The new law also means that if you made a gift from your IRA to charity in 2012, that gift is not taxable. If you made a gift like this you may have already saved on taxes without even realizing it!
There are at least three ways you can use your IRA to support the important work of charity in 2013.
2. CATCH-UP
3. CONVERSION The new law has a special provision that — 2012’s Not Over Yet. allows you to make catch-up gifts from your IRA to charity in January 2013. You can make a catch-up gift by making a gift directly from your IRA to charity in January 2013. Catch-up IRA gifts will be treated as if you made the gift in 2012. If you want to make a catch-up IRA gift, you must hurry. All catch-up gifts must be made by January 31, 2013. The catch-up may actually allow you to double the amount you give to charity from your IRA this year! You may be eligible to make up to a $100,000 gift from your IRA in January. This would count as a 2012 rollover gift. If you made another $100,000 gift from your IRA, that gift would count as a 2013 rollover gift.
I have reviewed the IRA Rollover information and: I would like to speak with someone who can provide additional information. I would like to receive information on other charitable tax planning options. Name Street City State/Zip Home Phone Work Phone Email (Please complete and return. All inquiries are treated with complete confidentiality.)
The new law also contains special provisions that may allow you to convert a taxable distribution from your IRA to a non-taxable distribution. How does this work? If you took a taxable distribution from your IRA in December 2012, you can avoid taxes on the distribution by making a cash gift to charity in January 2013. Time to convert your 2012 distribution is limited – you must make a cash gift to charity in January 2013 to qualify for this special tax treatment. Don’t delay! This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.
Don’t forget that one of the benefits of the IRA charitable rollover is that unlike most other charitable gifts, gifts from your IRA are not subject to deduction limits based on your income. Please call us if you would like to learn more about how you can use your IRA to make a gift to charity. Certain IRA gifts may help you reduce the amount of taxes you have to pay when you file your tax return in April.
You may be eligible to make a special gift to charity and save on your taxes.
Hurry!
Did you know that earlier this month Congress passed legislation extending the IRA charitable rollover? The law includes many ways for you to use your IRA to make gifts to charity, such as Fort Hays State University, this year.
Brad Botz, CGPA P. 785-628-5620 Senior Director of Gift Planning F. 785-628-5625 bjbotz@fhsu.edu P.O. Box 1060 – Hays, KS 67601