Your IRA Can Benefit Your Favorite Idaho Charity

MB900427741[1]One thing you should neverforget about your IRA – even though you make contributions with pre-taxdollars, and once inside these accounts your money grows tax-free, thegovernment is counting on getting their share of tax revenue from you at somepoint. Which is why only those over age 70-1/2 are eligible to make tax-freetransfers (of no more than $100,000) from IRA funds directly to charity. Bylimiting eligibility and capping the transfer amount, the government limitstheir exposure to lost revenue.

So, why might you want toutilize this IRA-to-Charity strategy? A CharitableIRA Rollover lets you give to your favorite charity while avoiding taxes onIRA distributions. Consequently, this is a very popular win-win strategy fortaxpayers who have accumulated a lot of money in their IRAs, but don’t need themoney to live one – and would rather be “voluntary philanthropists” as opposedto “involuntary philanthropists.”

A recent Kiplinger article titled “Who Can Transfer IRA Funds to Charity?”explains the ins and outs of CharitableIRA Rollovers. If you think this strategy would be appropriate for you,beware. There are strict rules governing the proper execution of thesetransfers, as well as their ultimate tax-treatment.

While Congress generallyapproves the use of this strategy on a year-by-year basis, the good news isthat they already approved it for this year. This means you should have plentyof time to plan if you’d like to make a charitable transfer this year.

For more information on IRAs and otherestate planning subjects, contact IdahoEstate Planning and schedule aconsultation. Remember,good planning is no accident.

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