IRA Donations

Another way to save taxes is to donate your required minimum distribution from your individual retirement account. Individual retirement accounts known as IRAs, or IRAs, for short, are required to make a distribution to their owners at a certain age, the required minimum distributions or rmds. For short start when the owner turns 72 rmds are generally four to 8% of your IRA balances, the funds distributed to you because of an RMD or taxable income. However, you have the option to donate all or a portion of your RMD to qualified organizations. These donations are called qualified charitable distributions. This would save you taxes versus receiving the RMD funds and then writing a check to these organizations. Writing the check would be eligible for a deduction on your personal tax return what you can’t do with your funds that you donate from your IRA. But remember, charitable deductions are only useful if your itemized deductions exceed your standard deduction. donating your RMD means you never have to be taxed on That distribution. You can also donate to organizations from your IRS in excess of your rmds. You can donate up to $100,000 from your IRAs. These donations are funds that will never be part of your taxable income.