Consider an IRA for tax-free donations

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I discovered a possible way for us in the community to give to our nonprofits. It will help them, as well as you, when you do not declare your IRA on your income tax. I hope this explains what can be done.

The Charitable IRA Rollover provision of the American Taxpayer Relief Act of 2012 enables individuals to make a tax-free distribution of up to $100,000 from traditional or Roth IRA accounts for charitable purposes.

But this opportunity ends Dec. 31, 2013, unless Congress extends it another year.

Don’t miss this opportunity to make a significant gift to a nonprofit tax-free.

Here’s how it works: You must be 70-years or older. You may transfer up to $100,000. If you are married you can each use your own accounts, doubling your family’s possible gift.

Youf gift will count toward your required minimum distribution for 2012 if you haven’t taken it at this time.

Your gift will not be taxed for federal income tax purposes, as a regular distribution.

You cannot claim an income tax deduction.

Your IRA custodian should send your gift directly to your nonprofit.

Check with your income tax accountant on which form you must sign.

Roberta Hunt

Walla Walla

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