Monday, August 28, 2006
New incentives for charitable giving from IRAs
The Chicago Tribune reported today that new rules which are part of the pension reform legislation make it easier for indiviuduals age 70 1/2 or older to donate money to charity directly from their IRA's. Gifts up to $100,000 are credited toward the donors minimum withdrawal and are tax deductible. According to Sandra Block in USA Today, an individual would need to roll money from the 401(k) plan into an IRA "before they could make a direct contribution to charity."