Have you considered using the funds in your individual retirement account (IRA) to make a charitable contribution? If so, it’s a good idea to follow up on your plans sooner rather than later. Under the American Taxpayer Relief Act of 2012, individuals who are age 70½ or older can make a qualified charitable distribution from an IRA directly to a charity. You can exclude donations up to $100,000 of an otherwise taxable distribution from your gross income and count them toward the current tax year’s required minimum IRA distributions.
The rules only apply to distributions made in 2012 and 2013, so you need to act now. If this option doesn’t suit your needs, there are many other planning opportunities involving charitable giving. Not sure which ones apply to you? Be sure to contact us today to get the answers to all your financial questions.