The IRA Charitable Rollover is Back!

On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 into law. The Act brings back the popular IRA charitable rollover provision wherein donors age 70½ or older are once again eligible to move up to $100,000 from their IRAs directly to qualified charities without having to pay income taxes on the money. This provision is retroactive to January 1, 2012. In addition, Congress recognized the issues with a late extension and provided two special transition rules:

• Qualified distributions made by Feb. 1, 2013, may be counted retroactively for the 2012 tax year.
• A taxpayer, who took a distribution from an IRA in December 2012, may make a contribution to a qualified charity before Feb. 1, 2013, and treat the gift as a direct transfer.

What Are The Benefits?  
Donors can transfer up to $100,000/year directly from a Traditional or Roth IRA to a qualified charity, including PCI, without paying income taxes on the funds transferred.

What Are the Rules?

• Donors must be 70 ½ years old or older when making the qualified charitable distribution.
• The distribution must go directly from a Traditional or Roth IRA to a charitable organization.
• Gifts cannot exceed $100,000 per taxpayer, per year.
• Gifts must be outright (not to a donor-advised fund, support organization, charitable trust, or charitable gift annuity).
• Gifts must be made between January 1, 2012 and December 31, 2013.

If you have any questions please email Amy Corton, Director of Development, Planned Giving, at acorton@pciglobal.org or call (619) 987-9829.