Tax Relief Act opens ‘tax window’ for charitable rollovers — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Tax Relief Act opens ‘tax window’ for charitable rollovers

Get PDF file

by on
in Small Business Tax Deduction Strategies

Charitable-minded retirees who have reached age 70½ have another chance to do a good tax deed with benefits. Reason: The 2010 Tax Relief Act extends a tax break for “charitable rollovers.”

Strategy: Donate funds directly from your IRA. In other words, instead of taking a taxable withdrawal and contributing the difference, you can tap into IRA funds to provide the full amount to charity. There’s zero tax due on the distribution.

This tax break for charitable rollovers officially expired after 2009. (Previously, it was set to expire after 2008, before it was extended.) Now the new tax law retroactively reinstates the provision to Jan. 1, 2010, and extends it again through 2011. So you still have a “window of opportunity” to take advantage of a charitable rollover.

How it works: An individual age 70½ can exclude from tax “qualified charitable distributions” of up to $100,000 that would otherwise be taxable as IRA distributions....(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment

Previous post:

Next post: