Fiscal Cliff Deal Restores IRA Giving Tax Break

The fiscal cliff bargain struck by Congress and the White House last week resurrects a lapsed tax break for the elderly who make charity donations from individual retirement accounts (IRAs), The Wall Street Journal writes.

The popular “charitable rollover” provision allows people aged 70-and-a-half or older to shift up to $100,000 from an IRA to a qualified charity without having to count the money toward taxable income. The rule had expired at the end of 2011 and is slated to do so again at the end of this year.

IRA holders can still make rollovers this month or donate the mandatory IRA distributions they took in December and count them in their 2012 tax returns, according to the nonprofit coalition Independent Sector.

Read a Chronicle of Philanthropy article on the fiscal cliff deal’s implications for nonprofits.

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