For Those over 72 who Donate to Charity

If you are over age 72 then you are forced to withdrawal money from your Traditional IRA each year and include that amount in your taxable income. Most retirees don’t itemize since their itemized deductions (state and local taxes, mortgage interest, and donations) don’t exceed the $28,700 standard deduction – thus their donations don’t save them any tax. The solution: If you donate to charity directly from your IRA, then you don’t have to include that donated amount as income on your tax return…so in a round-about way, you get to deduct that donation (i.e., your taxable income doesn’t include the amount you donated to charity directly from your IRA). Even though the required minimum distribution age is 72, you can start using this strategy when you reach age 70.5.