Qualified Charitable Distribution Information
There is still time to make a contribution to SPR AND receive a 2012 tax breakIf you were waiting on the fiscal cliffhanger, you can still make a Qualified Charitable Distribution during January 2013 – directly from your IRA to the charity – and count it towards 2012. The American Taxpayer Relief Act of 2012 passed on January 2, 2013, extended the Qualified Charitable Distribution (QCD) provisions for 2012 and 2013. Several special transition rules were included to enable taxpayers to have a donation made before February 1, 2013, treated as a 2012 QCD.
A QCD is an otherwise taxable distribution from an IRA owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity. An IRA owner can exclude from gross income up to $100,000 of a QCD made for a year, and a QCD can be used to satisfy any IRA required minimum distributions (RMDs) for the year.
IRA owners should keep records to substantiate the timing of contributions and distributions regarding any 2012 QCD made in January 2013. Please consult your tax advisor.
More information available through the IRS
