As the end of the year approaches, many people may be considering charitable donations. If you are 70.5 years old, or manage the finances of someone that age, you may want to read more about donation options. The Financial Rescue Package passed by Congress in October 2008 (known as Public Law 110-343) included a two-year extension of an IRA rollover provision, which means taxpayers may transfer gifts directly from their IRA to a charity – without including it as income and without paying taxes on the total amount of the gifts. A nice summary is posted on this United Way web site.
As always, it is best to consult your tax or legal counsel before taking any action. This post is not intended to serve as legal advice, it is a commentary on news related to estate planning.