Posted , by Erin Phillips, Campaign Consultant and Marketing Director. Topic: Government.

On January 1, 2013, the House and Senate passed H.R. 8, The American Taxpayer Relief Act of 2012, a bill to avert the “Fiscal Cliff.” The president subsequently signed the bill into law.

Those age 70-1/2 and older can donate up to $100,000 from Roth or traditional IRAs to certain charitable organizations without including the amount of their IRA withdrawals in gross income. Taxpayers can make a rollover in January 2013 and have it treated as if made in 2012. Also, taxpayers who took a distribution in December of 2012 may contribute that amount to a charity and treat it as an eligible rollover to the extent it otherwise qualified as a charitable rollover.

The legislation sets the new expiration date as January 31, 2013, so that eligible gifts made this month will qualify for favorable tax treatment in 2012. Any gift made thereafter this year will receive the same tax exemption, but count toward 2013 reporting.

Please consult a tax professional for guidance, but you may want to be sure your senior donors are aware of this development.

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