Did you know that you potentially avoid paying tax by giving to a charity directly from your Individual Retirement Account (IRA)? In this clip, Joe and Al show you how to do this by explaining the requirements and demonstrating how much you could save in taxes if you give from your IRA rather than writing a check to a charity.
0:04 “There is a way to donate directly right out of your IRA; this is relatively new.”
0:11 “You must be over 70 1/2 to do that. You can do up to $100,000 per person, per year. If you’re married, that’s a couple hundred thousand [dollars].”
0:20 “Here’s the important thing. It can count as your required minimum distribution. In other words, if you have a RMD coming up…you can give it directly to charity.”
1:24 “The example is a $10,000 donation to charity, and this is a couple that is age 73. They don’t have a lot of itemized deductions…so if they write a check, here’s what happens.”
2:15 “Social Security is one of those things where if you have less income, less is taxed.”
3:00 “That’s 26% savings right there by just directly giving it to the charity rather than taking the tax.”