Tax Strategies & Credits

IRAs offer Tax-Free Distributions for Charitable Purposes

Lee Reams II
IRAs offer Tax-Free Distributions for Charitable Purposes

Part of the Congress extender bill, is the exclusion from gross income of qualified distributions. This applies to individual's age 70-1/2 and older and is extended one year through 2014. If you are contemplating a gift to a charitable organization (or to multiple organizations), eligible individuals should consider using IRA based dollars for tax purposes. Better yet, a qualified charitable distribution also counts toward a taxpayer's required minimum distributions from a traditional IRA. The total amount cannot exceed $100,000 for the tax year. This is $100,000 for each spouse if a joint return is filed. Important: The charitable distribution must be made directly by the IRA trustee to the charitable organization(s) and completed by the end of the year, 2014 to qualify.

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Lee Reams II

Lee Reams II


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