Amy O'Connor Anthony Capobianco Community Foundation
December 10, 2013

Give More – Tax Free- From Your IRA Before December 31!

This post by Anthony J. Capobianco, ChFC, CLU, Principal, Capobianco Financial Advisors, and Amy S. O’Connor, Esq., Shareholder, McNamee, Lochner, Titus and Williams, P.C. Both Mr. Capobianco and Ms. O’Connor provide leadership to the Community Foundation for the Greater Capital Region through the Professional Advisors Steering Committee. 

Take advantage of the recent tax legislation which extends a giving opportunity – Qualified Charitable Distributions (QCDs) from IRAs – through 2013.

How it Works:

  • If you are 70½ years or older you can make a gift before the end of 2013 from your IRA by transferring assets (up to $100,000) directly to the Community Foundation for the Greater Capital Region. If married, each spouse can transfer up to $100,000 from his or her IRA to the Community Foundation.
  • The payout can satisfy the Required Minimum Distribution (RMD) from your IRA, but you do not have to report the distribution as taxable income.
  • The transaction incurs no federal income tax and the asset is no longer part of your estate for tax purposes – reducing potential estate taxes your heirs could face associated with receiving IRA assets. You can leave your heirs other assets that have a more favorable tax treatment.
  • The Community Foundation will handle all administrative details.

Donors may be interested in this opportunity if they:

  • Have excess retirement savings.
  • Are required to take minimum IRA distributions, but do not need the income.
  • Are looking to avoid additional income tax liability.
  • Are looking to minimize future estate taxes.
  • Have designated a favorite charity as a beneficiary of retirement assets.

If you are interested in transferring IRA assets directly to the Community Foundation for the Greater Capital Region, please call our office at (518) 446-9638.