The 2017 Tax Season is now over, but it’s never too early to start your end-of-year planning to save taxes in the coming year.
Did you know that you can use your required minimum distributions from a traditional IRA to make a charitable gift? Donors over the age of 70 ½ can instruct their IRA administrator to transfer up to $100,000 a year to a qualified not-for-profit organization.
The value of these gifts will not be counted as part of your adjusted gross income, so you will not pay income taxes on the amount distributed. However, these gifts will not qualify for charitable contribution income tax deductions.
But, don’t make the mistake of withdrawing the money first and then making the donation to the charity. Contact your IRA administrator what steps you need to take because the procedures vary from firm to firm.
Questions? The Law Office of Debra Simms is here to help. Call us today 386.256.4882
This blog post is not case-specific and is provided only for educational purposes and is not intended to provide specific legal advice. Blog topics may or may not be updated and entries may be out-of-date at the time you view them.