The IRA Charitable Rollover Is Back

1/10/2013 Press Release

On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 (ATRA) into law, extending the IRA charitable rollover provision until December 31, 2013. This means that you may be able to transfer up to $100,000 tax-free from your IRA to charity if:

  • You are age 70½ or older at the time of the gift.
  • You make a gift of any amount up to $100,000 on or before December 31, 2013, to qualify for 2013.
  • You transfer funds directly from an IRA.
  • You transfer the gift outright to a qualified charity.

ATRA also includes two rules that allow donors to make retroactive 2012 contributions. This may be attractive to donors who would like to take advantage of the rollover in both 2012 and 2013, but they must act quickly.

  • If you received an IRA distribution in December 2012, you may elect to count that distribution (or a portion thereof) as a 2012 IRA charitable rollover if you transfer the amount in cash to an eligible charity by January 31, 2013.
  • Alternatively, you may make an IRA rollover gift by January 31, 2013, and elect to have these distributions treated as qualified charitable distributions in 2012.

Additionally, any gift made in any amount up to $100,000 in 2012 may count retroactively for 2012.

The IRA Charitable Rollover and OCF
Since the IRA charitable rollover provision was first enacted in 2006, many Oregon Community Foundation donors have taken advantage of this opportunity to create or add to charitable funds. Their gifts of IRA assets have allowed them during their lifetime to support causes that they care about by giving a portion of their retirement assets tax-free to the Foundation.

With a minimum of $50,000, you can create a permanent OCF fund that is invested and will grow over time. Grants addressing community needs will be made in perpetuity from the fund.
Although donor advised funds and supporting organizations are not eligible to receive charitable IRA transfers, there are many other OCF fund types available from which to choose.

For more information on to take advantage of this opportunity, as well as other ideas for aligning your financial planning with charitable giving, please contact an OCF charitable gift planner.

OCF does not provide tax or legal advice; please consult your tax professionals if you are contemplating a charitable gift under the extended law.