Dear Friends of ASEB,
If you or anyone you know is over the age of 70 and 1/2, I would like to let you know about a provision in the “American Tax Payer Relief Act”, H.R.8, which allows people who had to make a minimum withdrawal from an IRA in December 2012 to give some or all of that in cash to a charity, provided that is done before January 31, 2013. The attachment gives the best information I have found to date. Additionally my broker tells me that the new Form 1040 instructions explain how to enter the transaction details on Line 15b of Form 1040.
In my case, I had to take $1,959.53 out of a small IRA. I took $1,459.53 in cash and instructed the broker to pay $500.00 to the IRS.
I now plan to write a check to ASEB for $1,959.53. While under the rules this will not qualify as a charitable deduction, it does reduce my 2012 taxable income and therefore my 2012 taxes. Roughly speaking I can give ASEB $2,000 for a probable out of pocket cost of $1,500.
Of course, if you choose to make a donation in this way it need not be the whole of your IRA withdrawal. It can be any part of it. Simply send a check to ASEB by January 31 for the amount you would like to give.
Please understand, I am in no way qualified to give financial advice, nor have I any way of knowing whether this provision in the law has any applicability to your own circumstances. However, as I believe you know, I am always on the lookout for ASEB.
Best wishes for 2013, and please mark your calendar for May 4 when we shall be holding a special event to celebrate ASEB’s 25th year of service to the East Bay community.
Sincerely,
Lance Reynolds
Board President
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