A Special IRA Giving Opportunity

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January 21, 2013

You May Still Contribute to Your 2012 Taxes through a Special IRA Giving Opportunity


There is good news in the American Taxpayer Relief Act of 2012 that Congress passed on New Year’s Day.  If you’re age 70 ½ or older, you may be able to take advantage of an important incentive for charitable giving.


Congress had re-authorized for 2012 and 2013 the provision that allows individuals to make gifts of up to $100,000 per year from their IRA accounts to one or more charities, without first incurring tax on the withdrawal.  Your gift may also count as your annual required minimum distribution from your IRS.


This means that you can direct up to $100,000 from your IRA to the American Brain Tumor Association with no federal income tax liability.  The IRA Rollover may provide you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.


Now, there are some details and restrictions to be aware of:

  • You must be 70 ½ or older when you make your gift, and the gift must be made from an IRS – no other retirement plans (i.e. 401k, 403b, or SEP accounts) qualify.
  • Your gift must come to us outright (i.e. may not be a pledge).
  • Although the distribution will be free from income tax, it will not generate an income tax charitable deduction.

There are other details which your financial planner will be able to guide you through.


Because Congress acted after the end of 2012 to pass this legislation, they have provided two ways you can make this type of gift and still have it count for 2012:

  • Option 1 – Make an IRA transfer by January 31, 2013 and elect for it to count as a charitable gift for 2012.  The administrator of your IRA plan will make the actual distribution to us. 
  • Option 2 – If you took a distribution form your IRA in December 2012, you are allowed to send us a check in the amount of your December 2012 IRA distribution by January 31, 2013.  Then elect on your tax return for the December 2012 distribution to count as an IRA rollover.


Stacy Fass, the ABTA’s National Director of Development, is always available to discuss this and other giving opportunities with you at 773-577-8781 or sfass@abta.org


Thank you for your continued commitment to our cause.


Remember, 2012 charitable IRA distributions can be made until January 31, 2013. 


Highlights of the Charitable IRA Extension

How Your IRA Can Fund Critical Research and Patient & Caregiver Programs:

·         Make a gift for 2012 through January 2013 to maximize the benefits of these gifts and minimize the taxes on funds in a traditional IRA.

·         Take advantage of the charitable IRA for the current year until December 31, 2013.

·         If you are over 70½ and would like to use your IRA funds for a charitable purpose for 2012, you have until January 31, 2013, to do so.

·         Those who took a distribution from an IRA in December 2012 can avoid having those distributions taxed by making a cash contribution to a qualified charitable organization(s), like the Foundation Fighting Blindness, before January, 31, 2013 ... that’s just 19 days away!

Check out what Forbes magazine says about
giving IRA assets to Charity.