IRA Rollover Extended Through 2013

Author National Philanthropic Trust

March 26, 2013

As part of the legislation that resulted from the year-end Fiscal Cliff, Congress extended the individual retirement plan (IRA) charitable rollover provision. This provision allows eligible individuals to make tax-free distributions to charity directly from an IRA.

The provision, which has been an on-and-off rule since it was introduced in 2006, enables individuals aged 70 ½ and over to make tax-free distributions of up to $100,000. To take advantage of this provision for this calendar year, individuals must donate before December 31, 2013.

While donor-advised funds – as well as private foundations and split-interest gifts, such as a charitable remainder trust—cannot accept direct IRA distributions tax-free, a donor-advised fund can be the named beneficiary of an IRA or other qualified plan.

For more information on the IRA charitable rollover, click here.

Please note that the information above is intended as general education. The application of tax rules is dependent on individual financial situations. NPT does not provide tax advice and strongly encourages you to consult with your tax advisor or attorney before making a charitable contribution.