Using Your IRA to Make Charitable Gifts

January 14, 2013

Although the IRA owner is not entitled to a charitable deduction for the gift, generally the income tax exclusion is more valuable than the foregone tax deduction.
-Lisa Whitcomb, director of wealth strategies, Glenmede

1. A taxpayer over age 70 who made one or more charitable gifts directly from an IRA account to a qualified charity at any time during 2012 will be treated as having made a 2012 QCD in the aggregate amount paid, up to $100,000.

2. A taxpayer may elect to treata December 2012 IRA withdrawal (up to $100,000) as a QCD to the extent the taxpayer pays all or part in cash to a qualified charity after the withdrawal date and before January 31, 2013.

3. During January 2013 (and only January), a taxpayer over age 70 may pay up to $100,000 to qualified charities directly from an IRA account and may elect to treat such withdrawals as having been made on December 31, 2012. The amount is reduced by any payment identified in (1) or (2) above so the 2012 amount is not more than $100,000.

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