If you are over 70, you likely must take a distribution from your IRA each year.
This is a taxable distribution so it increases your taxable income.
Alternatively, you are allowed to divert some or all of your required IRA distribution to a qualified charity. If you do this, it’s not recognized as income and, therefore, reduces your Adjusted Gross Income (AGI).
This might be a strategy worth considering if any of the following apply to you:
- You are required to take a distribution from your IRA
- You don’t need the money
- You are concerned about your taxable income being too high
- You desire to make additional charitable contributions