The House Ways and Means Committee is considering retirement plan changes. Retirement issues aren’t unpopular with the Democratic minority in the Senate. The retirement provisions can be spun off from other tax provisions and could pass in the House and could pass in the Senate too.
Individuals age 70 1/2 or older can make direct charitable gifts from an IRA of up to $100,000 per year to charities (with certain exceptions) without having to report the IRA distributions as taxable income on their federal income tax returns. And these distributions to charity satisfy the otherwise taxable Required Minimum Distribution (RMD) payments. A charitable deduction isn’t allowable.
This post was written by Larry Blair.