Three Model Portfolios Designed to Help You Sleep Well At Night


FREE=>Get your SAMPLE Issue <== FREE

(The Adobe pdf may be slow to load so give it time)
Click to Subscribe Now


Thursday, December 24, 2009

Tax Tips: Charitable Contributions for IRA Owners

Retirement Advisor Tax Tip: Special Charitable Contributions for Certain IRA Owners

This provision, currently scheduled to expire at the end of 2009, offers older owners of individual retirement accounts (IRAs) a different way to give to charity. An IRA owner, age 70½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charity. This option, created in 2006, is available for distributions from IRAs, regardless of whether the owners itemize their deductions. Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension (SEP) plans, are not eligible. To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity. Amounts so transferred are not taxable and no deduction is available for the transfer. Not all charities are eligible. For example, donor-advised funds and supporting organizations are not eligible recipients.

Amounts transferred to a charity from an IRA are counted in determining whether the owner has met the IRA’s required minimum distribution. Where individuals have made nondeductible contributions to their traditional IRAs, a special rule treats transferred amounts as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the case with regular distributions. See the following url for more information:
Publication 590 Are Distributions Taxable?

FREE ISSUE:
December 2009 Retirement Advisor Newsletter

No comments:

Post a Comment

How To Subscribe

To subscribe to The Retirement Advisor Newsletter you have three options:
  1. Click to Subscribe now

  2. You can pay online via the secure Internet site, Paypal. Simply go to https://www.paypal.com/ and enter our e-mail address, TheRetirementAdvisor@gmail.com to make the payment of $99 for a 1-year subscription.

  3. If you prefer to use the U.S. Postal Service, send a check in the amount of $99 payable to “The Retirement Advisor Newsletter, LLC.” Mail it to:
    The Retirement Advisor Newsletter, LLC
    P.O. Box 58076
    New Orleans, LA 70158-8076

Don't miss out! Subscribe to The Retirement Advisor now!

The Retirement Advisor Model Portfolios all began with $200,000 on 1/1/2007