Seniors can make charitable contributions directly from their IRA
An IRA owner, age 70 ½ or over, can directly transfer tax-free, up to $100,000 per year to an eligible charitable organization. This option is available in tax years 2006 and 2007. Eligible IRA owners can take advantage of this provision, regardless of whether they 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 amount given to the charity. Not all charities are eligible under this provision. For example, donor-advised funds and supporting organizations are not eligible recipients.
This is a good strategy if you want to pass on retirement funds without taxation and don't need those funds to live on.
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 amount given to the charity. Not all charities are eligible under this provision. For example, donor-advised funds and supporting organizations are not eligible recipients.
This is a good strategy if you want to pass on retirement funds without taxation and don't need those funds to live on.
