Give To Charity From An IRA To Lower Your Tax Bill
To keep your tax bill down, if you are over 70½, consider a qualified charitable contribution, which makes donations of up to $100,000 from an Individual Retirement Account (IRA) to a fully deductible charity.
A QCD can help you eliminate, or at least reduce, taxes owed on your required minimum distribution (RMD). That's the amount you are required to take out of your IRA account annually after turning 70½.
Example: Your yearly RMD is $20,000, which counts as taxable income. But if you donate that amount to a charity, it's not counted as income, which may drop you into a lower tax bracket.
© 2019. All Rights Reserved.
- Staying Realistic About Investing Amid Volatile Market Swings
- How To Swap Real Estate And Defer Taxes, Maybe Forever
- As A Final Act of Love, Plan Thoughtfully
- How To Sell Your Small Business And Pay No Taxes
- Risk And Tax Effects Of An Installment Sale Of A Home
- The New Math Of Renting Out A Vacation Home
- Opportunity Zone Investment Frenzy Requires Caution
- The Most Important Financial News Of 2018
- Retirement Income Portfolio Survival
- Five Key Factors In Funding A Child's Education
- Key Tariffs, Rates And Economic Facts To Note In Fearful Times
- High Income Earners & Roth Conversion
- Time Itemized Deductions To Reduce Taxes
- The Big New Tax Break For Pre-Retired Professionals
- Sidestepping New Limits On Charitable Donations