05/18/2022
Are you charitably minded? If you’re 70½ or older, you may want to consider making a cash donation to a qualified charity out of your IRA. When distributions are taken out of traditional IRAs, federal income tax (and possibly state tax) must be paid. One way to transfer IRA assets to charity is via a tax provision that allows IRA owners who are 70½ or older to direct up to $100,000 a year of IRA distributions to charity. These are known as qualified charitable distributions. The money given to charity counts toward your required minimum distributions but doesn’t increase your adjusted gross income, which may make you qualify for other tax breaks. Questions? Contact us.