Money Wisdom
Charity Begins With Your IRA?
‘Tis better to give then receive, and it's especially nice to give and reduce your taxes! If you are over 70 ½ you can make a charitable contribution with IRA money without having to include that distribution in income. This could be an advantage over taking an IRA distribution and then giving it to a charity. By avoiding adding the IRA distribution to taxable income you reduce your "Adjusted Gross Income", which in turn lowers the threshold for the medical expense deduction. It also may affect what income bracket you fall into for Medicare premiums. This benefit is available this year only, so take advantage before Dec 31. Also be aware that you will not qualify if you give your IRA withdrawal to a charitable donor fund - the distribution must be paid directly to a qualified 501(c)3 charity.
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