IRA Direct to Charity – Last Call
For those over 70 1/2, a minor feature of the December tax deal from Congress allows individuals to use their 2012 RMD as a direct contribution to a charity (and thus excluding it from income calculations). But only under two circumstances and both must be completed by January 31, 2013:
- For those who took an RMD in December 2012, the individual can make a cash contribution to a charity up to the amount of the RMD
- Individuals who missed taking their 2012 RMD can direct that directly to a charity from their IRA.
But again, either must be accomplished by January 31 to treat it under this provision.Tags: taxes