RMDs to Charities

2015 Legislation offers a tax break for retirees

Typically, any distribution you receive from your IRA is treated as taxable income; however, this provision allows retirees age 70 1/2 and older to donate up to $100,000 tax free from their IRA each year. 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.

Because this distribution is excluded from your income, you avoid having to pay taxes on the donated amount.

Wondering if a charitable contribution from an IRA right for you?

Click here for an article from Putnam Investments about donating IRA assets to charity (PDF Format – 180k)

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