Roth IRA

Charitable IRA Distributions

Asset Allocation GettyImages-512058570 091516A little known but potentially powerful tool for the philanthropically inclined is the “qualifying charitable distribution” (QCD) from an Individual Retirement Account (IRA).  A QCD must be:

• From a traditional IRA or Roth IRA
• Transferred directly from the IRA Trustee to the charitable organization
• Made on or after the IRA owner has reached age 70 ½
• Contributed to a qualified charitable organization, as defined by IRC Section 170(b)(1)(a)

There are several tax benefits of QCDs, the most notable of which is that the distribution is not included in your Adjusted Gross Income (AGI).  This can provide a significant benefit over taking a distribution personally and then making a charitable contribution personally, which results in higher AGI and then (in […]

By |June 15th, 2016|Categories: BCo Community News|Tags: , , |Comments Off on Charitable IRA Distributions

IRS Reminds Taxpayers to Report 2010 Roth Conversions on 2012 Returns

Taxpayers who converted amounts to Roth IRAs or designated Roth accounts in 2010 and chose to defer the tax (under a special rule that applied only to 2010 conversion) must report half of the resulting taxable income on their 2012 returns. See IRS reminder here.

By |June 17th, 2013|Categories: Individual Tax, Retirement Planning|Tags: , , , , |Comments Off on IRS Reminds Taxpayers to Report 2010 Roth Conversions on 2012 Returns