Charitable IRA Rollover

12.18.2013

Exercise Your Options in 2013

 

Tax rules require owners of traditional IRAs who are 70½ or older to take a minimum distribution, or RMD, each year.
 

Ordinarily, that withdrawal counts as taxable income. But the charitable IRA rollover, or qualified charitable distribution (QCD), is a special provision allowing certain donors to exclude from taxable income -- and count toward their required minimum distribution -- certain transfers of Individual Retirement Account (IRA) assets that are made directly to public charities, including The New England Center for Children. 

 

The provision was first enacted for tax years 2006 and 2007, and has been extended periodically, most recently in January 2013, when it was made available for 2012 (retroactively) and for 2013. This special tax advantage has not been extended beyond its current Dec. 31, 2013, expiration date.

 

While we hope this information helps you with your gift planning, please note the information provided is not a substitute for expert legal, tax, or other professional advice, and we strongly encourage donors to work with counsel to determine the impact of this legislation on their particular situations.

 

 If you have any questions, please contact Tim McCabe at 508-481-1015 or by email at tmccabe@necc.org