TMTW 125 – QCD’s for 2012 available thru 1/31/13

Tax and Money Tip of the Week:
Qualified Charitable Distributions for 2012 Available through January 31, 2013! | January 16, 2013 | No. 125

While most of the tax law changes that were recently passed effect 2013 and future years, there are a couple of items that can impact your 2012 taxes.
 
One of these items relates to what is commonly known as the Qualified Charitable Distribution (QCD) for IRA distributions.
 
The QCD is the IRA Charitable Rollover provision of the tax law that allows a tax-free distribution to 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.
 
However, with the passage of the American Taxpayer Relief Act of 2012, this provision is extended through 2013. Additionally, there is a special provision that allows you to make a contribution in January 2013 that will be treated as a QCD for 2012!!
 
Therefore, if you are 70 ½ or older and have taken your 2012 Required Minimum Distribution from your IRA in cash during 2012, you can treat up to $100,000 of your 2012 RMD as a QCD if you make a cash contribution to a qualified charity by January 31, 2013!
 
Additionally, if you did not take your 2012 Required Minimum Distribution, you now have until January 31, 2013 to make a QCD and have it count as your 2012 RMD.
 
So if you are 70 ½ or older, you may benefit from this new provision. Give us a call to discuss.

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

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