From the San Juan Preservation Trust
The “fiscal cliff” legislation that was enacted on New Year’s Day delivered some good news for taxpayers age 70-½ or older. The American Taxpayer Relief Act of 2012 provides these taxpayers the opportunity to take advantage of the old “IRA Charitable Rollover” which has now been extended through 2012 and 2013. This provision allows a donor to make a tax-free distribution from a traditional Individual Retirement Account (IRA) or Roth IRA provided that money is transferred to a charitable organization.
And more good news: if you wish to transfer a December 2012 withdrawal to a charity, you may still do so, but you must act quickly and ensure the contribution is made by January 31, 2013.
And there is more: if you were one of many who made a charitable gift from their IRA last year in the hopes that Congress would extend the IRA charitable rollover, you are in luck! Your tax benefit is retroactive to January 1, 2012.
To read more about this tax-saving opportunity, visit www.sjpt.org.