Save on Income Taxes & Support Your Favorite Charity Through IRA Charitable Rollover!
The American Taxpayer Relief Act of 2012 (ATRA), includes a new tax-law provision known as “IRA charitable rollover,” which gives individuals 70 ½ or older who are receiving IRA distribution the opportunity to make a cash gift to a charity of their choice and still have a qualified charitable distribution (QCD).
This sort of move will not only save you income taxes, but also help minimize your taxable estate and allow you to support your favorite philanthropic organization, such as The Salvation Army.
If you’re 70 ½ or older, you can donate up to $100,000 a year directly from your Individual Retirement Account to The Salvation Army and receive the equivalent of a 100% income tax charitable contribution deduction. Both Traditional and Roth IRA’s may be used to make a gift.
“It’s a benefit across the board for those wishing to make a charitable donation and reduce their taxable income,” said Andrew Schrage, co-owner of Money Crashers Personal Finance. “Taxpayers can also use the idea of a Charitable IRA rollover in order to offset recent tax increases by the federal government. Another advantage is that this type of withdrawal can count towards a minimum required distribution, and people can also reduce their Medicare premiums by using this donation strategy.”
Here’s the hitch: IRA owners must take action before February 1, 2013, to take advantage of these potential tax breaks.
To find and reach out to a Planned Giving professional from The Salvation Army near you, enter your zip code at www.SalvationArmyUSA.org.