Don Steinmann's Investment Tip of the Week

Don Steinmann's
Investment Tip of the Week

Direct Charitable Giving From an IRA

They changed the rules for IRA withdrawals recently. If you’ve not started your withdrawals you have until at least age 72 to start (for most people, 73 or later). But one rule that did not change. You can do direct charitable donations from an IRA at age 70 ½, up to $100,000 year.

These Qualified Charitable Distributions (QDCs) count toward your required minimum distributions (RMDs). There are some tax advantages to doing this. Talk to your accountant or financial advisor about why this can make sense.

A caveat. This only helps you if you are going to make charitable donations anyway. If you don’t donate to charities already, this won’t save you any money.

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