Retirement Provisions in the American Taxpayer Relief Act of 2012

 The American Taxpayer Relief Act of 2012 (ATRA), passed to avoid the fiscal cliff, includes two provisions that are important to many IRA owners and retirement plan participants. The first extends tax-free charitable contributions from IRAs through 2013, and the second eases the rules for 401(k), 403(b), and 457(b) in-plan Roth conversions.

 The Pension Protection Act of 2006 first allowed taxpayers over the age of age 70½ to exclude from gross income otherwise taxable distributions from their IRA (“qualified charitable distributions,” or QCDs), up to $100,000, that were paid directly to a qualified charity. The law was originally scheduled to conclude in 2007, but was extended through 2011. The law has just been extended yet again through 2013 by ATRA.

 If you need legal advice for estate planning, Asset Protection Planning, or Medicaid planning, please contact our office at (941) 906-1231 for an initial consultation.