Tax-Free IRA to Charity Distributions May Be Extended
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A provision that permits taxpayers age 70½ and over to make direct distributions (up to $100,000) from their IRA account to a charity was available in 2008 and 2009. The distribution is tax-free, but there is no charitable deduction. This provision can be very beneficial to taxpayers who have social security income and/or do not itemize their deductions. This provision expired at the end of 2009.
POSSIBLE EXTENSION! An extension of this benefit for 2010 in included in House Bill H.R. 4213 which was passed by the House on May 28, 2010 and is awaiting consideration by the Senate. Watch for further details.
