Buried in the tax law changes just recently passed by Congress is the reinstatement for 2013 only of a provision that benefits taxpayers age 70 and older who have IRA money. Normally, all withdrawals from an IRA are taxed as ordinary income. This not only increases your tax bill but also increases your AGI (Adjusted Gross Income) which sometimes causes other tax increases.

Charitable contributions can be deducted on Schedule A if the total of itemized deductions exceeds the standard deduction. Many older persons find they save money with the standard deduction as they don't have state income taxes, mortgage interest, etc.

This means charitable contributions don't reduce tax bills. Every person's individual situation is different. This article is NOT intended to provide tax advice which you should obtain from your tax advisor. It is intended to get you to focus on this special break for 2013 and discuss it with your tax advisor.

To take advantage of this, you must notify your IRA custodian that you want to make a withdrawal and have it payable to a charity, such as the Meriwether Lewis Memorial Eisteddfod Foundation (MLMEF http://www.mlmef.org/ ) or the Welsh North American Association (WNAA www.nafow.org ). That withdrawal does count toward your RMD (Required Minimum Distribution) but will NOT be included in your AGI. Thus, you get the benefit of a tax deduction without having to itemize. Your AGI is also lower than it would otherwise be which may benefit you.

To make a contribution to the MLMEF, contact Ceri Shaw via Americymru or at americymru@gmail.com.

Contributions to the WNAA should be made payable to the WNAA and sent to PO Box 1054 Trumansburg, NY 14886. Please send a separate letter to the WNAA telling us what you are doing. You should indicate whether you want your contribution used for expenses related to this year's Festival to be held in Toronto or as an addition to our Endowment Fund. If you would like your contribution to be used for a specific sponsorship (Eisteddfod prize, seminar, etc.) please call our Executive Secretary, Dr. Megan Williams, at 607-279-7402 to discuss sponsorship opportunities.

Thank you for your continued support of your Welsh organizations!