The American Taxpayer Relief Act of 2012 (ATRA) has extended the qualified charitable distribution (QCD) provisions for 2012 and 2013.
A Qualified Charitable Distribution (QCD) is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE 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. Also, the amount of a QCD excluded from gross income is not taken into account in determining any deduction for charitable contributions.
This Act authorizes an individual with a traditional IRA and who has attained the age of 70½, or older, to satisfy their required minimum distribution for 2013 by having their IRA trustee issue a check directly to a qualified charitable organization from their IRA. Such a distribution does not increase your taxable income as a normal distribution would nor can it be taken as a charitable deduction against your taxable income. The advantage is that the amount can be included in your required minimum distribution.
Should you wish to contribute to A.B.R. in this manner, Associates For Biblical Research is recognized by the U. S. Internal Revenue Service as a 501(3)c charitable organization. Just indicate to us that the amount is a direct distribution from your IRA account.
For further information check the IRS website www.irs.gov enter QCD in the search box or speak with your tax advisor. Please feel free to contact ABR Executive Director, Scott Lanser at [email protected]