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No double-dipping on charitable transfer

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Q  You stated that you can make a charitable contribution directly from an IRA after age 70 1/2. Can you simultaneously claim a charitable deduction? P.M., Washington, D.C.

A No. Unfortunately, you don’t qualify for a deduction on Schedule A when you take advantage of this provision in the Pension Protection Act of 2006 (PPA). But there’s no tax due on qualified charitable distributions up to $100,000. Significantly, the charitable distribution counts as required minimum distribution (RMD) from your IRA. This can reduce or completely eliminate the tax on RMDs.

Tip:
The PPA provision officially expired after 2007, but it is expected to be renewed.

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