The compromise tax package just passed by Congress brings back for 2010 and 2011 the ability to donate tax-free from an individual retirement account. And, reflecting the end-of-year nature of the Congressional action, the 2010 donation can be made as late as January 31, 2011. (See section 725 of H.R. 4853).
If you are 70½ or older you can donate from your IRA directly to the qualified organization of your choice – tax-free! The tax package rule applies to the 2010 and 2011 tax years, and allows you to give up to $100,000 each year. You could call this rule the “Grin and Give Rule.” Continue reading “Tax-free IRA donations revived”
The Internal Revenue Service provided a reminder today on the ability of IRA owners to make tax-free donations to charities. This special rule expires December 31, 2009. I’m going to quote the IRS notice in full: Continue reading “IRS reminder on tax-free IRA donations”
Interested in donating to a charity before year-end? Have money in your IRA that you can give? Until December 31, 2009, you can donate to that charity directly from your IRA totally tax-free!
Come January 1, this rule is gone.
Read the details.
When choosing which assets to leave to which heirs, think of charities first for IRAs and other retirement plans. No one will benefit more as a beneficiary of your retirement plan than a charity (make sure it’s a Qualified Organization):
Charity beneficiaries don’t pay income taxes on IRA or other retirement plan distributions. Individual [...]
If you are 70½ or older you can donate from your IRA directly to the qualified organization of your choice – tax-free! This special rule, originally passed by Congress in 2006, was extended in October 2008 (§205 of H.R. 1424, the Emergency Economic Stabilization Act of 2008). The extension applies to the 2008 and 2009 tax years, and allows you to give up to $100,000 each year. You could call this rule the “Grin and Give Rule.” Continue reading “Donate Tax-Free from Your IRA”