The new tax landscape looks very different than it did in 2012. You, your parents, your clients—many people are affected by changes to legislation that took effect Jan. 1.
An especially timely change is that the IRA charitable rollover is back for 2012 and 2013. Donors aged 70½ or older are once again eligible to move up to $100,000 from their IRAs directly to qualified charities without having to pay income taxes on the money. You may make a gift on or before Dec. 31, 2013, to qualify for a 2013 gift.
Because this legislation was enacted in 2013, Congress provided two special transitional rules for 2012 gifts:
- Qualified distributions made before Feb. 1, 2013, may be counted retroactively for the 2012 tax year.
- A taxpayer who took a distribution from the IRA in December 2012 may make a contribution to a qualified charity before Feb. 1, 2013, and treat that as a direct transfer.
Congress has opened the door to 2012 gifts of IRA distributions for a very short time, so please contact us today at [email protected] or 800-594-9480 if you’re considering a charitable gift from your IRA. Even if you have already accepted your 2012 IRA distribution, you can turn it into a charitable gift. If this is a good solution for your financial situation, you can designate the gift to benefit any Southwest Initiative Foundation fund or program—from our General Endowment to your local community foundation and more.
For a look at what else you can expect for charitable giving tax law in 2013, check out this overview on our Planned Giving Pages.
Help us spread the word about this limited-time option for giving in the New Year!