The “Fiscal Cliff” and Tax-free Distributions!

Posted on January 7, 2013

Areyvut is excited about this piece of legislation and hope that it encourages others to give.

Congress Extends Tax-free Distributions from IRAs to Charities
As part of the “Fiscal Cliff” legislation passed by both houses of Congress and signed by President Obama, individuals can once again make tax-free distributions from Individual Retirement Accounts to public charities for 2012 and 2013.  Because 2012 has already passed, a special rule permits distributions taken in late 2012 to be transferred to charities before February 1, 2013.  Another special rule permits certain distributions made in early 2013 as being deemed made on December 31, 2012.  If you own an IRA and are 70 ½ or older, you may make a gift from your IRA of up to $100,000 per year to Areyvut with no federal income tax impact and your gift will be counted toward your required minimum distribution.  To obtain this benefit, you must instruct your IRA administrator to transfer funds directly to Areyvut.  Please note that if you withdraw the funds from the IRA first and contribute them to Areyvut, you will lose the tax benefit.

Feel free to pass this along to friends and family that might find this applicable.
 
You can earmark your funds for general operating support, for a particular program or they can be used to establish an endowment to support Areyvut’s work.  Your wish is our command.

Please contact your accountant with any questions and you can always reach me at 201-244-6702 or via e-mail at daniel@areyvut.org

Print Friendly, PDF & Email