IRA Rollover Donations

IRA Rollover Provision Extended through 2013!

(with Special Allowances for 2012)

With the passage of the American Taxpayer Relief Act of 2012, the provision for Qualified Charitable Contributions from an IRA has been extended to the end of calendar year 2013.

This rollover provision allows individuals 70-½ and older to withdraw funds from their qualified IRA accounts and donate it tax-free to a qualified charity.

The provision, which previously expired December 31, 2011, was extended through December 31, 2013.

Listed below are the basic guidelines of the provision:

1. The donor must be age 70-½ or older.
2. The charitable donation must be distributed directly from a traditional or Roth IRA.
3. $100,000 is the annual rollover maximum.
4. All IRA rollovers must be made by Dec. 31, 2013.

Special Rules for Qualified Charitable Contributions (QCD’s) for 2012:

1. A direct contribution from your IRA made by Jan.31 of 2013 may be counted as a 2012 QCD.
2. If you made an IRA distribution in cash during December 2012, you have until the end of January 2013 to send a charitable contribution in any amount up to $100,000 (limited by the amount of your distribution during December 2012).
   

   You can then treat this contribution as if you had sent it directly to the charity –
   This distribution could have been your required distribution for the tax year 2012.

3. If you happened to send a distribution directly to a charity from your IRA during 2012, it will be treated as a QCD.

This is a great opportunity to support work of the Priestly Fraternity of St. Peter via a tax-free direct rollover from your IRA. For more information, or to arrange a donation via an IRA rollover, please contact Mr. Jerry Getz in the Fraternity Business Department at (570) 842-4000 ext. 202.

Please consult with your tax adviser or investment manager if you are considering an IRA rollover.