Congress Extends IRA Charitable Rollover

In the past, St. Joseph’s students have benefited enormously when alumni have donated to the College from their IRAs. Most years since 2006, IRA owners age 70½ and older have been able to make a qualified charitable distribution (QCD) up to $100,000 each year. I thought you would like to know that the recently passed American Taxpayer Relief Act (ATRA) retroactively extends this option for 2012 and expands it until December 31, 2013. If you would like to make a gift to St. Joseph’s College from you IRA, there are three categories of potential gifts.

If you made a QCD directly from your IRA custodian to SJC in 2012 with the hope that the law would be retroactive. This QCD will be qualified retroactive to January 1, 2012. Second, if you did not make a QCD in 2012, you can do so during January 2013. This is similar to 2011 when it was possible to do a QCD for the prior year in January and a second QCD in the remaining 11 months of the year. If you have not made a QCD in 2012, this allows you to make two QCDs for an amount up to $100,000 in 2013.

Third, if you hoped to do a QCD in 2012, but in December 2012 received your IRA required minimum distribution (RMD), you can transfer those funds to SJC during January 2013. You will not have to report the IRA distribution as income. Effectively, the December 2012 RMD is converted to a January QCD that qualifies for 2012.

Kindly check with your advisors about the best ways to take advantage of this giving opportunity keeping in mind that the gift must be received by SJC prior to the January 31, 2013 deadline. As always, we will be pleased to assist you in any way possible. Our legal name is St. Joseph’s College, New York and our tax identification number is 11-1733439. 

Please feel free to contact me at 718.940.5579 or with any questions or concerns.

Clare Kehoe
Assistant Vice President for Grants and Major Gifts