IRA Rollover Provision Set to Expire!

New York Elder Law Attorney

Ring out the old, ring in the new, Ring, happy bells, across the snow:  The year is going, let him go; Ring out the false, ring in the true.  -Alfred, Lord Tennyson, 1850

Charitable IRA Rollover Provisions Set to Expire!

December 31st is the last day of 2013 and the last day for individuals to utilize the Charitable IRA Rollover Provision and save on taxes when donating to charity. The provision allows individuals ages 70 ½ or older to donate up to $100,000 of IRA assets to charity without reporting the withdrawal as taxable income.

Here are three major benefits to this provision:

  1. Reducing Taxable Income – The provision can help retirees avoid or reduce a host of taxes and penalties, including many tax increases that took effect this year.
  2. Annual Distribution Credit – The provision allows the donation to count toward the annual required minimum distribution that is required for individuals over the age of 70 ½.
  3. Social Security Benefits – The rollover provision can also help taxpayers avoid or reduce taxes on Social Security benefits and avoid higher Medicare Parts B and D premiums, which kick in when adjusted gross income exceeds $85,000 for individuals or $170,000 for couples.

As of this year, individuals with more than $200,000 of adjusted gross income and couples with more than $250,000 are subject to the new 3.8% tax on net investment income. Additionally, individuals with an adjusted gross income (AGI) of $250,000 and couples above $300,000 now start losing personal exemptions and itemized deductions. As income rises, you can also lose deductions for medical expenses, casualty losses and miscellaneous itemized deductions.

Receive the information and the sound advice you need to make important financial decisions by scheduling a confidential consultation with an experienced estate planning and elder law attorney who will tailor representation to meet all your health care, tax planning and elder care needs. Call the Stefans Law Group toll free at (800) 882-3625. If you prefer, fill out our intake form below and we will contact you. Let our family help your family.


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