If you are age 70 1/2 or older, or you know someone who is, here is some good news: The recent “fiscal cliff” legislation permits individuals to pay their 2013 charitable contributions out of their IRA and, thus, bypass having it taxed. What a great opportunity to help The Regeneration Project and its Interfaith Power & Light campaign.
Normally, IRA owners of this age are required to withdraw a certain amount each year from their account and add it their taxable income. But this new law, without changing the amount that must be taken out of an IRA, permits people to contribute these funds directly to the charities of their choice and thus reduce your income taxes for 2012, 2013, or both. Seniors may also use their tax-free IRA to make a one-time donation of up to $100,000 for a special purpose.
You can take advantage of this in two ways:
- Move up to $100,000 from your IRA by January 31, 2013, and save on your taxes for 2012. Alternatively, if you already took a distribution from your IRA in December 2012, you can donate to The Regeneration Project by January 31, 2013, and realize tax savings for 2012.
- Contribute up to $100,000 from your IRA anytime during 2013 for savings on your 2013 taxes.
For more information about how to use your IRA to help The Regeneration Project’s Interfaith Power & Light campaign, contact your financial planner,Â tax accountant, or The Regeneration Project. We’re at 672 13th Street, Suite 100, Oakland, CA 94612. Email Suzanne@theregenerationproject.org or call (510) 444-4891.