The Act also provides leniency for distributions made from an IRA to a taxpayer in December of 2012, if the funds are subsequently transferred by the taxpayer to an eligible charitable organization by January 31, 2013 (and the transfer otherwise meets the criteria for exclusion).
Some taxpayers who meet the criteria for making direct charitable distributions from their IRAs may realize a substantial tax benefit by taking advantage of this unique and very limited opportunity. For taxpayers who qualify, up to $100,000 per taxpayer may be excluded from income under this provision of the law for each year that it applies.
What does this all mean?
If you are 70 1/2, and you have not yet made your charitable contribution to the various ministries of the Ukrainian Orthodox Church of USA or the Ukrainian Historical and Educational Center of NJ, you can still do so up until January 31, 2013 and have it count as a contribution for 2012, but taking a distribution from your IRA. Your distribution will not be taxable.
The transfer must be made directly by the IRA’s trustee to the UOC of USA. You may not take a distribution personally and then contribute it to the UOC of USA without triggering taxation of the distribution.
If you believe that such a gift may be appropriate for you, we encourage you to promptly consult with your tax advisor and IRA custodian, as this limited window of opportunity in the tax law expires on January 31, 2013.
Please let us know if we can help you facilitate such a gift in any way by contacting Natalia at (732) 356-0090 or firstname.lastname@example.org.