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IRA Charitable Rollover

The IRA Charitable Rollover is back!

The American Taxpayer Relief Act of 2012 has been signed into law, which extends the IRA charitable rollover provision. This legislation:

  1. Retroactively reinstates the Charitable Rollover for 2012 for eligible distributions made after November 30, 2012.
  2. Allows any otherwise eligible gifts made after December 31, 2012 and before February 1, 2013 to be treated as a 2012 donation.
  3. Extends the IRA charitable rollover provision through December 31, 2013

To qualify for the rollover:

  • Donor must be at least 70 ½ years of age when the gift is made,
  • Transfer must be made directly from the IRA administrator to the charity,
  • The gifts from the IRA cannot exceed $100,000 per person ($200,000 for a couple) in a given year,
  • They can only be outright gifts,
  • No goods and services can be given in exchange,
  • Cannot be made to a donor advised fund or a supporting organization.

The law is retroactive and includes gifts in 2012 as well as 2013. If you did not make a qualifying gift in 2012 but would still like to, you can do so in one of two time-limited ways:

  1. Make a 2012 IRA Rollover in January 2013. You can do a rollover gift to the UNC Asheville Foundation in January and “elect” to have this be considered made in 2012. There is a short window of opportunity for this – it must be made by the end of January 2013. How the election is to be made will be specified by the Secretary of the Treasury later this year.

  2. Convert a December 2012 IRA distribution into a 2012 IRA Charitable Rollover gift. Some donors waited to take their required minimum distributions until December, hoping that the IRA Rollover would be extended for 2012. If that is the case, and the distribution meets all of the IRA Rollover criteria except for the direct transfer to charity requirement, you can now claim it as a charitable rollover gift in 2012, to the extent that you now transfer the distribution in cash to the UNC Asheville Foundation. This transfer from your bank account to UNC Asheville Foundation must occur by January 31, 2013. If you took a distribution in December and made a gift to UNC Asheville Foundation in December these two can be tied together, as long as the charitable distribution occurred AFTER the withdrawal from the IRA.

We urge you to consult your professional advisors regarding this charitable IRA rollover opportunity. To help ensure that your gift meets all requirements as a qualified charitable distribution, please feel free to contact Julie Heinitsh, Director of Planned Giving, at 828.232.2430 or jheinits@unca.edu.