Unique Opportunity for Charitable Giving in January 2013

The American Taxpayer Relief Act of 2012 creates a unique opportunity for charitable giving.  If they act during January 2013, individuals who have attained age 70 1/2 may make a tax-free rollover from their IRA to charity of up to $200,000. 

The new law restores the ability of a 70 1/2 year old individual to make a tax-free IRA distribution or rollover to a charity of up to $100,000 in 2013, and during January 2013, that individual can rollover an additional $100,000 and have it treated as though it were rolled over in 2012.

This allowance is, of course, subject to limitations.  For example, the donee organization cannot be a supporting organization or a donor-advised fund, and the individual cannot receive any consideration for the distribution.  

See United States: Charitable Giving Under The New Tax Law: A Unique (But Brief) Opportunity for IRA Rollovers And Other Highlights, Patterson, Belknap, Webb & Tyler, LLP, January 2013. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.