RMDs to Charities

Legislation offers a tax break for retirees

The provision allows retirees age 70 1/2 and older to donate up to $100,000 tax free from their IRA each year. Generally, when you take a distribution from your IRA, it is treated as taxable income. Under this provision, made permanent in the 2015 federal spending and tax package, those assets are excluded from income if the distribution is made directly to charity.

The distribution is not included in your income so you avoid the potential negative consequences that regular IRA withdrawals in retirement can create.

Is a charitable contribution from an IRA right for you?   Click here to read more.