Subscribe to Our YouTube Channel

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.

Important Points:

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.”

About the Hosts

Joe Anderson

President

CFP®, AIF®

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the...

Alan Clopine

CEO & CFO

CPA, AIF®

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently shares the CEO role with Michael Fenison, the original founder of the company. Alan is primarily responsible for the day-to-day activities of...