Tax-Free IRA Giving Opportunity Extended for 2013
Are you 70 ½ or older? Will you turn 70 ½ by December 2013? Do you have an IRA?
With the passage of the American Taxpayer Relief Act of 2012, individuals can once again make tax-free gifts from their Individual Retirement Accounts to a qualified charitable organization [501(c)(3)] through 2013.
By making a qualified charitable gift (QCD) directly from your IRA to Elderhostel, you can benefit from tax savings. If you are 70 ½ or older, you are required to take minimum distributions (RMD) from your IRA. Per IRS regulations, your gift to Elderhostel will count toward your RMD, but it will not be added to your adjusted gross income. Therefore, it will not be taxed, but you may not itemize the charitable contribution.
How it Works
The American Taxpayer Relief Act extends the Charitable IRA Rollover through December 31, 2013.
Donors aged 70 ½ or older can ask their IRA custodian to transfer up to $100,000 in 2013 to a qualified charity like Elderhostel.
The transfer will be tax-free to the qualified charity and thus akin to a 100% charitable deduction and is not subject to the normal charitable giving limit of 50% of adjusted gross income.
There is of course no separate charitable deduction for the tax-free transfer to the qualified charity.
Tax-Free Gifts from IRAs cannot be used in the following ways:
They cannot fund a charitable gift annuity or be given as a contribution to a charitable remainder trust or our Pooled Income Fund.
Transfers to private foundations, donor-advised funds and supporting organizations do not qualify.
No goods or services may be received in exchange for these contributions.
Gifts directed from your IRA Administrator should be made payable to:
11 Avenue de Lafayette
Boston, MA 02111-1746
This information is not intended as legal or financial advice. We recommend you consult your plan administrator and your tax advisor or personal attorney to understand how the distribution requirements apply to your personal circumstances.
Please contact Ann Lamond for information on how a tax-free gift from your IRA can help you support Elderhostel and lifelong learning.
Elderhostel Planned Giving
11 Ave de Lafayette
Boston, MA 02111
877-737-0664 (toll free)