Code Section 408
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 408 | *12/31/2011 | The American Taxpayer Relief Act of 2012 | Tax-free distributions from individual retirement plans for charitable purposes | -1,280 |
| 408 | 12/31/2009 | The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 | Tax-free distributions from individual retirement plans for charitable purposes | -979 |
*Note on Effective Date
The provision contains two special rules. First, the provision permits taxpayers to elect (in such form and manner as the Secretary may prescribe) to have qualified charitable distributions made in January 2013 treated as having been made on December 31, 2012 for purposes of sections 408(a)(6), 408(b)(3), and 408(d)(8). Thus, a qualified charitable distribution made in January 2013 is permitted to be (1) treated as made in the taxpayer’s 2012 taxable year and thus permitted to count against the 2012 $100,000 limitation on the exclusion, and (2) treated as made in the 2012 calendar year and thus permitted to be used to satisfy the taxpayer’s minimum distribution requirement for 2012.
Second, the provision permits taxpayers to elect (in such form and manner as the Secretary may prescribe) to treat any portion of a distribution from an IRA that occurred after November 30, 2012 and before January 1, 2013 as a qualified charitable distribution to the extent that the following requirements are met: (1) the portion is transferred in cash, after the distribution and before February 1, 2013, to a charitable organization described in section 408(d)(8)(B)(i); and (2) the portion is part of a distribution that would have met the requirements of a qualified charitable distribution but for the fact that the distribution was not transferred directly to the charitable organization.
Tax-free distributions from individual retirement plans for charitable purposes
Explanation of Provision
The provision extends the exclusion for qualified charitable distributions for two years, to distributions made in taxable years beginning before January 1, 2014.
Tax-free distributions from individual retirement plans for charitable purposes
Explanation of Provision
The provision extends the exclusion for qualified charitable distributions to distributions made in taxable years beginning after December 31, 2009 and before January 1, 2012. The provision contains a special rule permitting taxpayers to elect (in such form and manner as the Secretary may prescribe) to have qualified charitable distributions made in January 2011 treated as having been made on December 31, 2010 for purposes of sections 408(a)(6), 408(b)(3), and 408(d)(8). Thus, a qualified charitable distribution made in January 2011 is permitted to be (1) treated as made in the taxpayer’s 2010 taxable year and thus permitted to count against the 2010 $100,000 limitation on the exclusion, and (2) treated as made in the 2010 calendar year and thus permitted to be used to satisfy the taxpayer’s minimum distribution requirement for 2010.
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