Avoid tax on required minimum distributions. After age 70 ½ you are typically required to withdraw money from your traditional retirement accounts and pay the resulting income tax bill. However, if you don’t need the money, there is one way to avoid income tax on withdrawals from traditional retirement accounts. Retirees ages 70 ½ and older who transfer any amount up to $100,000 directly from their IRA to a qualified charity will not owe income tax on the contribution. “By directly rolling over the donation to a charity you are lowering your adjusted gross income, which in turn does other good things for you, such as make less of your Social Security taxable,” says Jackie Perlman, principal tax research analyst at The Tax Institute at H&R Block. “If you normally give $1,000 every year to a charity and you have a $1,000 required minimum distribution, why not just combine the two?”
Would assume that it would not be a tax deductible donation ?? How to do it?
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