IRA Charitable Rollover Is Back

8 Jan

On January 1, 2013, both the Senate and House passed the American Taxpayer Relief Act of 2012 (ATRA). The bill includes a number of provisions that will be favorable for charitable giving, including the IRA Charitable Rollover.

IRA Charitable Rollover.

Since 2006, IRA owners age 70½ and older have been able to make a qualified charitable distribution (QCD) up to $100,000 each year. ATRA extends and expands this option for 2012 and 2013.

There are three categories of potential donors.

First, some individuals in 2012 made QCDs directly from their IRA custodian to charities with the hope that the law would be retroactive. These QCDs are qualified retroactive to January 1, 2012.

Woman Giving Gift

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Second, individuals who did not make a QCD in 2012 can do so during January of 2013. This is similar to 2011, when it was possible to do a QCD for the prior year in January and a second QCD in the remaining 11 months of the year. If an individual has not made a QCD in 2012, this allows a generous person to make two $100,000 QCDs in 2013.

Third, many persons had hoped to do a QCD in 2012, but in December of 2012 received their IRA required minimum distribution (RMD). If these individuals transfer those funds to charity during January of 2013, they will not report the IRA distribution as income. Effectively, the December 2012 RMD is converted to a January QCD that qualifies for 2012.

Other changes include made by ATRA include Long Term Capital Gains, Alternative Minimum Tax (AMT), Gift & Estate Taxes, and various other Items.

For more information, contact Val Walker, Minnesota United Methodist Foundation, 612-230-3338, or

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