Good news! If you’re a taxpayer wanting to make tax-free donations to charities from traditional and Roth IRAs, you can still do so for 2012.
Congress recently extended the IRA charitable rollover provision retroactively for all of 2012 and through Jan. 31, 2013. The provision allows people 70 Ω and older to donate up to $100,000 a year tax free to qualifying charities.
To claim a gift as a 2012 IRA rollover donation, however, it must be received before Feb. 1, 2013. We encourage donors to act quickly, as most financial institutions take 7-10 business days to process IRA charitable rollover donations.
Additionally, if you took a required minimum distribution from your IRA in December 2012, you may contribute all or part of it to charity and claim the gift as a 2012 rollover donation, if itís received prior to Feb. 1.
Over the years, the IRA rollover provision has been popular with CFCA donors. They’ve used the tax-free distributions to pre-pay sponsorship, fund higher education costs for their sponsored child, or simply as contributions to the CFCA general fund.
For more information, contact Michael Calabria by email at [email protected] or call (800) 875-6564, ext. 7146.