Tax Savings With Eternal Benefits

03.01.14 | Rick Snavely

irs-formThe American Taxpayer Relief Act of 2012 has been extended through the end of 2013, allowing the provision for you, or a family member, to make a tax-free charitable IRA distribution (also known as IRA charitable rollover). If you meet the requirements of this law, you could provide a tremendous blessing to Family Life while saving on your own tax bill. Here are some key elements about this act: 

  1. You must be age 70 1/2 or older at the time your IRA distribution is made to Family Life.
  2. Your distribution must be made before January 1, 2014, and it must be made directly from your IRA custodian to Family Life as you instruct. 
  3. You may make a tax-free IRA distribution of any amount up to $100,000 for 2013. A spouse may also give up to $100,000 from his or her IRA. The amounts distributed from your IRA qualify as a charitable distribution and are excluded from your Adjusted Gross Income (AGI), saving you on paying tax on this distribution.
  4. If you are an IRA owner over age 70 1/2, you are forced to take a required minimum distribution each year. The good news is, until January 1, 2014 your IRA distributions given to Family Life can satisfy your required minimum distribution up to an amount of $100,000.
  5. If you do not normally itemize your deductions, you can also benefit by making an IRA charitable distribution to Family Life since this is not included in your AGI. You get the benefit of a charitable contribution that you normally would have not received if you has simply made a contribution directly to Family Life.

If you would like more information on how you can benefit from this law while blessing the ministry of Family Life at the same time, please contact us at 800-927-9083.