Donate Up to $100,000 Tax Free Between Now and January 31–and Count It as a 2012 Withdrawal
Have you often wished you could use IRA funds to make a gift to your favorite charity without it being treated as a taxable withdrawal? Now you can. But time is short—you have until January 31, 2013 to make your IRA contribution for the 2012 tax year.
Time is running out for you to make a special gift in support of The Heritage Foundation. You can donate up to $100,000 from your IRA tax free for the 2012 tax year! This unique opportunity for individuals over the age of 70 ½ expires January 31, 2013.
What you need to know
- The law expires on December 31, 2013, which means you can make a gift in January for 2012 and until December 31 for 2013. You may make a maximum gift from your IRA of $100,000 each year.
- If you are married with separate IRAs, you and your spouse each can make gifts up to $100,000.
- You must be 70 ½ years of age or older. This age group may be faced with mandatory withdrawals, and a charitable gift counts as a withdrawal without the consequences of increasing your taxable income and/or income tax bracket.
- Typically, your gift must be made directly from your IRA to Heritage in order to qualify*. Contact your IRA custodian about how to make a transfer. Please direct your gift to the attention of Lori McNicoll at the number below.(*There is a special exception: If you took a distribution from your IRA in December 2012, you can avoid taxes on the distribution by making a cash gift to charity in January 2013. Please call for more information.)
- While you would not receive an income tax deduction for this gift, the distribution would be excluded from your taxable income. A transfer to The Heritage Foundation would also fulfill some or all of any required minimum distribution without increasing your taxable income.
Did you know that IRA assets left to non-spousal heirs will be subject to both estate and income taxes? This means your IRA assets could be faced with taxes in excess of 70 percent! All the more reason to consider using your IRA to make a meaningful gift to The Heritage Foundation now by taking advantage of the rollover legislation, or by designating Heritage a beneficiary of your account upon death.