Window of Opportunity Now Open for Charitable IRA Rollovers

8:48 pm Estate Planning

window open 150x150 Window of Opportunity Now Open for Charitable IRA RolloversThe fiscal cliff tax deal signed by President Obama yesterday included a provision that extends the charitable IRA rollover through 2013.  First introduced in 2006, this rule had expired at the end of 2011 and those wishing to take advantage of it in 2012 were kept waiting, hoping that Congress would act by Dec. 31.

And even though Congress did not act until January 1, the new charitable IRA rollover provision does include a short window for 2012 donations – the month of January is that window.

As most IRA owners know, you must take the required minimum distribution from a traditional IRA once you reach the age of 70 1/2 and pay tax on those withdrawals.  With a charitable IRA rollover, you can donate what you should have withdrawn to charity and take a deduction instead of a tax hit.

This short window of opportunity only applies to those who waiting until December to take their RMD.  You must ask your IRA custodian to send the distribution directly to your chosen charity – direct contributions do not qualify.

Get started by contacting our Orange County asset protection estate planning law firm as soon as possible.

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