The American Taxpayer Relief Act of 2012 (ATRA) extended tax-free charitable contributions from IRAs through 2013. The IRS has provided guidance (on its Retirement Plans webpage) on how the extension applies to 2012 qualified charitable distributions (QCDs).
The IRS clarifies that a QCD made in January 2013 that is treated as a 2012 QCD will satisfy an IRA owner’s unmade 2012 required minimum distribution (RMD) if the QCD equals or exceeds the 2012 RMD. Further, QCDs made in January 2013 for 2012 cannot be used to satisfy an IRA owner’s 2013 RMD (even if the IRA owner has already received his or her 2012 RMD). The IRS also provides guidance on how 2012 QCDs are to be reported on Form 1040 by IRA owners, and on Form 1099 by IRA trustees.
To view the IRS guidance, click here.
If you have questions or need assistance, contact the Insurance Experts at Henssler Financial:experts@henssler.com or 770-429-9166.
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The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
