The Charitable Giving Home Run
If you’re accustomed to giving to charity, it’s time to take bunching donations into consideration. They will surpass the standard deduction amount so you can itemize for that year, while taking standard deductions in other years. But there’s an extra catch.
For generous seniors, the law offers a great benefit: the qualified charitable distribution. Right now, the law allows traditional IRA owners of 70 years old to directly transfer up to 4100,000 from a traditional IRA to a qualified charity. This distribution will satisfy your required minimum distribution, thus killing two birds with one stone.
2 thoughts on “7 Clever Tax Strategies Every Retiree Should Know”
I’m 72 1/2 I cant retire because of credit card debt I hav good credit but 33k in credit card total What do you suggest? I have never been late on my payments
I have concerns with the advice given.
1) According to IRS Publication 590B, you must be 70 1/2 to make such a contribution, not 70. Also, the limit is $100,000 not 4100,000, as your article suggests.
2) The advice to rollover to a Roth as soon as possible may cost tax money. Had one done it in 2017 the rates would have been higher than they will be in 2018. The issue of one’s personal marginal tax rate is not even mentioned. If one is in a 25% marginal tax bracket this year because of unusually high income, but expects to be in a 15% marginal tax bracket next year, your advice to do it as soon as possible will cost the tax payer money.