2012-2013 IRA Charitable Rollover

With all the angst surrounding the “fiscal cliff” deal negotiations in late 2012, something very positive came out of the legislative agreement to avoid the cliff for those 70½ and older: the renewal of the IRA Charitable Rollover in the tax code.

Helleborus niger 'HGC Josef Lemper' blooming in the Witt Winter Garden.

Helleborus niger ‘HGC Josef Lemper’ blooming in the Witt Winter Garden.

Here’s how it could benefit you or someone you know who has an Individual Retirement Account (IRA) and who is 70½ or older—the age of IRS required minimum distributions.

  • The IRA Charitable Rollover enables people to give tax-free donations to charity from their Traditional IRA account of any amount up to $100,000 yearly for 2012 and 2013.
  • The IRA charitable distributions made before February 1, 2013, can count for 2012 if the donor wants them to.
  • IRA Required Minimum Distributions taken in December 2012 and given to charity before February 1, 2013, count as a 2012 tax-free distribution for the account’s owner.

If you have an IRA, we encourage you to discuss these new rules with your professional advisor. If you would like to consider an IRA Charitable Rollover gift to the Arboretum Foundation, please contact our executive director Paige Miller at 206-325-4510 or pmiller@arboretumfoundation.org.