Tax-Free Transfers to Charity Renewed For IRA Owners 70-1/2 or Older; January Distributions Can Count For 2012 (IR-2013-6)

IRA owners at least age 70-1/2 have until January 31, 2013, to make a direct transfer, or to contribute an IRA distributions received during December 2012, to an eligible charity. The American Taxpayer Relief Act of 2012 (P.L. 112-240 ) extended for 2012 and 2013 the provision authorizing qualified charitable distributions (QCDs) paid directly to an eligible charitable organization. Each year, the IRA owner can exclude from gross income up to $100,000 of these QCDs. The QCD option is available regardless of whether an eligible IRA owner itemizes deductions on Schedule A. Transferred amounts are not taxable and no deduction is available for the transfer. QCDs are counted in determining whether the IRA owner has met his or her IRA required minimum distributions for the year. For tax-year 2012 only, IRA owners can choose to report QCDs made in January 2013 as if they occurred in 2012. In addition, IRA owners who received IRA distributions during December 2012 can contribute, in cash, part or all of the amount distributed to eligible charities during January 2013 and have them count as 2012 QCDs. QCDs are reported on Form 1040 Line 15. The full amount of the QCD is shown on Line 15a. Do not enter any of these amounts on Line 15b but write “QCD” next to that line.

 

IR-2013-6, 2013FED ¶46,245

 

Other References:

 

Code Sec. 408

 

CCH Reference – 2013FED ¶18,922.0326

 

Tax Research Consultant

 

CCH Reference – TRC RETIRE: 66,514

 

AUTHOR

Wolters Kluwer Tax and Accounting

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