|By Riley McDavid|
We can all be forgiven if we don’t remember many, or even any, of the details about the so-called “fiscal cliff” deal that Congress and the Administration struck about the time 2012 was turning into 2013. Without taking any sides — really, I mean it — it seems like every six months or so we have another governmental kerfuffle that some of us don’t understand at the time and certainly don’t recall with any clarity in hindsight. With each new one our vocabulary of Washingtonspeak expands — fiscal cliff, debt limit, sequester, and Mrs. McD’s personal favorite, “kick the can down the road.”
Well yesterday Mrs. McD, who enjoys nosing about for obscure stuff on the web, found a nearly year-old article with some really good news about the 2012/2013 fiscal cliff resolution, as reported by Tom Herman in the Wall Street Journal:
”As part of the ’fiscal cliff’ deal,” Mr. Herman wrote, ”Congress has resurrected a popular tax-law provision, known as the ’IRA charitable rollover,’ that had expired at the end of 2011. The rule allows many investors 70-1/2 or older to transfer as much as $100,000 a year from an individual retirement account directly to a qualified charity without having to count any of that transfer as taxable income. The transfer, if done properly, counts toward the taxpayer’s required minimum distribution for that year.”
In other words:
• If you are 70-1/2 or older and you take up to $100,000 from an IRA and spend it on whatever whim hits you, you must declare it as income. But if you roll over up to $100,000 directly to Age Well, the amount rolled over is not subject to income tax.
• Also, the amount directly rolled over can qualify as satisfying part or all of your Required Minimum Distribution, or RMD.
Caution — The phrase “directly rolled over” means exactly what it says. Writing in Forbes, Deborah Jacobs warned that you must ask “the IRA custodian to send the distribution directly to the charity, rather than funneling the money to the charity yourself.” If you take the money out and send it to Age Well yourself, the amount won’t qualify.
“I wish people everywhere could understand what our most generous donors have long known,” said Dr. Marilyn Ditty, CEO of Age Well. “They appreciate that more than 93% of the money we receive goes directly to help seniors, and less than 7% to administration and fund raising. Few charities can even approach that record.”
Here’s what your gift can do:
• $10,000 can feed 20 homebound seniors three meals a day for three months.
• $25,000 can provide two weeks of Adult Day Care for 25 seniors with impairments.
• $75,000 can provide 3,000 hours of Case Management to seniors in crisis.
• $100,000 can provide door-to-door medical appointment transportation to 3,000 seniors.
Talk to your tax advisor.
And also talk with Michael Crvarich of Age Well, who can tell you more about the IRA Rollover Gift or other legacy options. Michael can be reached at (949) 855- 8033 or at mcrvarich@my agewell.org.
“Our senior population continues to grow at the same time funding from traditional sources continues to shrink,” Dr. Ditty said. “Your gift can do immeasurable good for our seniors right here in Southern Orange County.”
Coming up on the Age Well Calendar:
Tuesday, October 29: Senior Summit. “Care Management — Managing Your Health.” South Shores Church, 32712 Crown Valley Parkway, Monarch Beach. Free Parking, Free Admission, and Complimentary Lunch and Refreshments. RSVP by October 25 to Casey Gholson, 949-496-9331, ext. 123.
Sunday, November 10: Seniors’ Prom: “The Roaring 20’s” at the Irvine Marriott Hotel Benefiting Meals on Wheels. 5 pm to 9 pm. Entertainment by Johnny Vana’s Big Band Alumni. Tickets $45 in advance $50 at the door. Tickets available at Age Well sites through Friday, November 1. Transportation available at select sites. For more information, call (949) 855-8033.