by Cory Schmelzer San Diego Wealth Management
As you may know, owners of traditional IRAs who are in their seventies and older must take annual withdrawals “Required Minimum Distributions” (RMDs) from those IRAs by December 31 of each year. The bad news is that the distributions are taxable income, and many seniors do not need this income to meet obligations.
That’s where the “America Gives More Act of 2014” comes in. A bipartisan majority of the House passed this act (H.R.4719) in July of 2014, which enables Americans aged 70½ and above, to have their distribution of up to $100,000 per year made payable directly to a charitable organization without tax consequences.
This allows the IRA owners to meet the RMD rules, which carry a stiff penalty if ignored, and not face any tax liability on the withdrawn money because instead of going to the account holder it goes instead to charity.
Many seniors may already have charitable organizations that they support, but here is a list of San Diego specific organizations:
San Diego Foundation (This site contains a searchable database of San Diego charities)