The Salvation Army is pleased to announce a great opportunity for donors who may have missed the December 31 tax write-off deadline because of fiscal cliff uncertainty.

The IRA Charitable Rollover, which Congress extended January 1, 2013 as part of the American Taxpayer Relief Act of 2012, allows any IRA rollover gift (up to $100,000) made by January 31, 2013 to count toward 2012 distributions.

The new law is also retroactive back to January 1, 2012 for any gift from an IRA made in 2012 and extends IRA rollover gifts through December 31, 2013.

In addition, donors who took their 2012 IRA required minimum distribution

(RMD) in December 2012 without making an IRA rollover gift may still transfer any

amount of the RMD (up to $100,000) to  The Salvation Army by January 31 from

their personal funds and not have to report that amount as RMD income. This

applies only to RMDs taken in December 2012.

WHO BENEFITS FROM THE IRA ROLLOVER? 

  • Individuals who take mandatory minimum withdrawals, but don’t need additional income.  You can give your required distribution to a qualified charity without having to count in your taxable income.
  • Taxpayers who don’t itemize their deductions. The IRA rollover most benefits the nearly two-thirds of Americans who do not itemize deductions on their tax returns and therefore do not receive a tax benefit for charitable contributions.
  • Itemizing taxpayers who’ve reached the charitable giving limit. Donors who itemize their taxes are prohibited from deducting more than 50% of their adjusted gross income for the purpose of making charitable donations. Donations from an IRA are excluded from the percentage limit, allowing individuals who have reached the 50% threshold to give more.
  • Individuals who intend to leave a portion of their IRA to charity at death anyway. These donors can make the gift now while they are living and thus be able to witness the benefits of their generosity.

WHAT DO YOU NEED TO KNOW TO TAKE ADVANTAGE OF THE IRA ROLLOVER?

  • Give Now. Only contributions made from traditional or Roth IRAs through Dec. 31, 2013 are eligible.
  • Age Requirement. You must be 701/2 years old or older when the distribution is made.
  • Donation Limit. Your total charitable IRA rollover contribution cannot exceed $100,000 per year.
  • Directly to the Charity. Distributions must be made directly from the IRA account to the charity.
  • Professional Advice. Please consult with your tax professional if you are considering an IRA rollover gift.

Questions? Please contact our Gift Planning Office at 816 968-0363 or ed_roberts@usc.salvationarmy.org to learn how your IRA contribution can help The Salvation Army immediately.