IRA Rollover Extension for 2013
Congress has passed the American Tax Relief Act of 2012 that extends an earlier provision allowing individuals who are at least 70 ½ to request their IRA administrators make distributions directly to their favorite charities in 2013.
The principal rules for direct transfers from a IRA to a qualified public charity, such as Pension Fund, are that the IRA owner must be 70½ or older and that the transfer is for no more than $100,000 each year. The amount transferred will fulfill all or part of the required minimum distribution. It must be to a public charity either outright or for a specific purpose. The transfer is made directly from a trustee to the charitable organization.
For example, in 2013 you can authorize a direct transfer of the minimum distribution required from your IRA to a charity, such as Pension Fund's Ministerial Relief and Assistance, and the minimum distribution will not be included in your gross income. Note that since there is no income tax inclusion, there is no charitable income tax deduction either.
If you wish to make an IRA distribution to a charity for 2013, you will need to have your IRA trustee or broker send your funds directly to the charity no later than Dec. 31, 2013. If you have any questions regarding making a donation from an IRA, call Ruth Chavez Wallace (Pension Fund VP of Development) directly at 1.866.495.7322 to discuss your options.