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Fiscal Cliff Deal Allows Charitable IRA Rollovers in 2013 and 2012

cash.jpgA provision in the American Taxpayer Relief Act of 2012, the fiscal cliff deal passed by Congress and signed by the President in January, 2013, provides people 70 1/2 years and older the ability to donate up to $100,000 per year directly from their IRA’s to charities. This provision will last until December 31, 2013.

Until February 1 of this year, people who took out their required minimum distributions in December 2012 or January 2013 can donate cash to charity and elect to count that distribution as a 2012 charitable IRA rollover. For donations during the rest of 2013, you need to ask the plan administrator to send the cash directly to the charity. To read more, here’s a good article from the National Council on Nonprofit.