According to the Law Office of Jill A Snyder,Congress has revived a law
\nthat lets you make charitable donations (such as to VRG) directly from
\nyour IRA, which might provide you with some significant tax advantages.<\/p>\n
If you a\u2019re over the age of 70\u00bd, you\u2019 are required to take minimum
\ndistributions each year from your IRA, and you have to pay income tax on
\nthose distributions. But the \u201ccharitable rollover\u201d law lets you transfer
\nassets from your IRA to a charity, and whatever amount you transfer
\nreduces the amount you a\u2019re required to withdraw. So if you a\u2019re
\nrequired to withdraw $20,000 in 2016, but you instead donate $20,000 to
\ncharity, you don\u2019t have to withdraw any funds for yourself, and you
\ndon\u2019t have to pay any income tax.<\/p>\n
You won\u2019’t get a charitable deduction for the amount you donate in this
\nway. However, donating directly from an IRA may be better than taking a
\ndistribution and then making a donation, because it results in a lower
\nadjusted gross income \u2013 which can help you avoid taxes on Social
\nSecurity benefits, reduce your Medicare premiums, limit the 3.8% surtax
\non investment income, and qualify for other deductions and credits.<\/p>\n
In addition, donating from an IRA is definitely to your advantage if you
\notherwise wouldn\u2019t be eligible for a charitable deduction, either
\nbecause you don\u2019’t itemize your deductions or because you\u2019 are subject
\nto the charitable deduction \u201cphase-out\u201d for higher-income taxpayers.<\/p>\n
To qualify, you must contact the plan custodian and have the custodian
\ntransfer the assets directly to the charity. If the custodian sends you
\nthe funds and then you give them to the charity, you\u2019’ll have to pay
\nincome tax on the distribution.<\/p>\n
You can donate up to $100,000 to charity each year from an IRA. A
\nmarried couple can donate up to $100,000 each, as long as each spouse
\ncontributes from his or her separate account.<\/p>\n
This is not legal or financial advice, which you should obtain from your
\nlegal or financial advisor.<\/p>\n","protected":false},"excerpt":{"rendered":"
According to the Law Office of Jill A Snyder,Congress has revived a law that lets you make charitable donations (such as to VRG) directly from your IRA, which might provide you with some significant tax advantages. If you a\u2019re over the age of 70\u00bd, you\u2019 are required to take minimum distributions each year from your […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9922","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/posts\/9922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/comments?post=9922"}],"version-history":[{"count":1,"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/posts\/9922\/revisions"}],"predecessor-version":[{"id":9923,"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/posts\/9922\/revisions\/9923"}],"wp:attachment":[{"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/media?parent=9922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/categories?post=9922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrg.org\/blog\/wp-json\/wp\/v2\/tags?post=9922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}