Tax and Money Tip of the Week
Can I make a donation from my
IRA this year?
August 15th, 2012 | No. 105

I recently fielded a question from one of our clients that I felt would be of interest to many of our readers.
 
He wanted to know whether he could still make a contribution from his IRA directly to his church and not have it be included in his taxable income for 2012.
 
He is referring to the Qualified Charitable Distribution (QCD) provision of the tax law that allows a tax-free distribution directly to a charity, up to $100,000, from your IRA if you are 70 ½ or older. This distribution also counts towards your Required Minimum Distribution (RMD).
 
This provision in the tax law expired at the end of 2011. Therefore, the answer to his question right now is “NO”.
 
However, on August 2, 2012, the Senate Finance Committee approved the Family and Business Tax Cut Certainty Act of 2012. This bill includes, as one of its provisions, an extension of the QCD for 2 years.
 
If, and when, Congress approves this bill, and the President signs it into law, I will let you know.

Questions or Comments?

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Mark Vitek, CPA/PFS, CFP®
…until next week.