Friday, January 4, 2013

Charitable IRA Rollover

The 2012 Taxpayer Relief Act
Charitable Impact
Part 1

The Charitable IRA Rollover is back for 2012 and 2013.  A couple of points to keep in mind:

1)    If your client had his/her IRA custodian make a transfer directly to UC in 2012 that would have qualified as an IRA rollover under the expired law, that is retroactively covered by this law.

2)    If your client took the Required Minimum Distribution (“RMD”) in 2012 and wants to make a Charitable IRA rollover now there are two options:

a)    Direct a Charitable Rollover Contribution  up to the $100,000 limit in January to the UC Foundation.  It can be deemed a December 31, 2012 contribution.  (Note – this does not eliminate the taxable RMD distribution; it is an additional distribution/contribution)

b)    If your client took his/her IRA RMD in December 2012 he/she can now contribute part or all of that RMD to UC before February 1, 2013 and it will be deemed a qualifying contribution for 2012 if the client elects that treatment. 

Since a client electing second option will be writing a personal check it is imperative that they tell the charity they are electing this provision so the charity can get the acknowledgement correct.

As always, we are happy to talk with you and any clients to explore options for their gifts.  Call Jeff Dundon directly at 513-556-6147 or toll free at 888-556-8889 and ask for Jeff Dundon or Brian Nielson.

1 comment:

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