Charitable Distributions from IRAs: Gone After 2011?

9:59 pm Estate Planning, Tax Planning

red flags 150x150 Charitable Distributions from IRAs: Gone After 2011?Last December, Congress retroactively reinstated the ability to make qualified charitable distributions from an IRA for those who are at least 70 1/2 years of age, with a limit of up to $100,000.

This step allowed qualifying individuals to funnel their Required Minimum Distribution to charity directly from their IRAs, thus removing the RMD as income and taking a charitable deduction.

This provision is set to expire at the end of 2011, and it is unknown at this time whether or not it will be extended.  So, you may have only seven more weeks to take advantage of qualified charitable distributions from your IRA.

The rules for making an IRA charitable rollover are:

  • You must be at least 70 ½;
  • You must make the donation from a traditional IRA – Roth IRAs and other retirement plans do not qualify;
  • Donations cannot exceed $100,000 annually;
  • For 2011, you must make the donation between Jan. 1, 2011 and Dec. 31, 2011.

Contact our California estate planning law firm to ensure your retirement plan aligns with the current tax laws and takes advantage of the benefits of any new provisions before they expire.

Your California legal and financial planning experts are at your service; Contact us today.

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