My 86 year old memory is failing and I need to know it the past practice of bypassing taxes by having the IRA trustee transfer money from the IRA directly to a charity is still in effect for 2012. Wasn't there a code or law number that this was referred to?
The Qualified Charitable Distribution provision has expired.
The last two Kiplinger newsleters have said it will be extended, and recommendd making QCDs even before the law changes, since it anticipates the law will be retroactive to 1/1/12.
It is not currently in effect for 2012. It expired at the end of 2011. However, many people are of the opinion that there is a good chance that Congress will reinstate it retroactively for 2012 after the elections. You can wait to see what happens later in the year. As an alternative, the Kiplinger Tax Letter suggests that if you itemize deductions, you can have your IRA custodian make a direct transfer to the charity, or charitable trust, as if the law were still in effect. If Congress does not renew the law, the distribution would be taxable but you would be able to deduct the entire contribution as a charitable donation.
It's called a Qualified Charitable Distribution - QCD. Is that what you're thinking of?
Bob Sandler
of bypassing taxes by having the IRA trustee transfer money from the IRA directly to a charity is still in effect for 2012. Wasn't there a code or law number that this was referred to?
It expired 12/31/11.
At the end of 2010, it was extended retroactively for 2010 (it had expired 12/31/09) and everyone had until 1/31/11 to make the transfer. Congress could always do this again but as of now it does not exist.
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