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

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