Reminder: 2012 Charitable IRA Rollover Deadline is Jan. 31

9:19 pm Estate Planning

time running out e1323903320529 Reminder:  2012 Charitable IRA Rollover Deadline is Jan. 31The fiscal cliff tax deal signed into law earlier this month reactivated a special tax break that allows those age 70 ½ and older to exclude up to $100,000 of traditional IRA income by funneling their required minimum distribution (RMD) to charity through what is known as a Charitable IRA Rollover.

The deadline for doing a Charitable IRA Rollover for 2012 is next Thursday, Jan. 31.  To qualify, you must have waited until December to take your 2012 RMD.  You must ask your IRA custodian to send the distribution directly to your chosen charity – direct contributions do not qualify.

Making a Charitable IRA Rollover does not allow you to take a deduction; it removes the donated amount from your adjusted gross income and is counted against your RMD for that year.

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