The Tax Hike Prevention Act of 2010 & IRA Charitable Donations
The Tax Hike Prevention Act of 2010 extends tax-free donations to charities such as VRG from individual retirement accounts (IRAs). This legislation allows seniors (age 70 1/2 and older) to transfer up to $100,000 per year directly from their IRAs to charities in 2011. The withdrawal would be tax-free and would fulfill the requirements for required minimum distributions. There would be no additional deduction for the charitable donation. This provision is especially beneficial to those individuals who do not need the money from their required minimum distributions and who could be obligated to pay alternative minimum tax as a result of such distributions. This is not personal tax or financial advice. Please speak to your tax, legal, and financial advisers about specifics.
