Ask Kim

Kiplinger

Minimum Age for Tax-Free IRA Gifts to Charity

Kiplinger.com
[Question]

I'm 69 years old, and I'm trying to determine if I can transfer money from my IRA to charity now without having it taxed as income. Or do I have to wait until age 70½?

[Answer]

You can only transfer money tax-free from your IRA to charity (called a "qualified charitable distribution") after you turn 70½. The transfer must be made after you reach that exact age-no earlier than six months after your 70th birthday.

SEE ALSO: 26 Ways the New Tax Law Will Affect Your Wallet

This timing is different from the rules for required minimum distributions, which can be taken anytime during the year you turn age 70½ (or up to April 1 of the year after that, for your first RMD). After you turn 70½, you can transfer up to $100,000 each year from your IRA to charity, which can count as your mandatory distribution but isn't included in your adjusted gross income.

You can always withdraw money from your IRA before turning 70½ and give it to charity, but it will be reported as income on your tax return. If you itemize, you can then deduct the gift as a charitable contribution. However, fewer people will be itemizing this year, now that the standard deduction has more than doubled under the federal tax law passed late last year. For taxpayers age 65 and older, the standard deduction for 2018 is $13,600 for singles and $26,600 for married joint filers.

For more information, see New Tax Law Offers Added Incentive to Make Tax-Free Transfer of RMDs From Your IRA to Charity. Also see Charitable Giving Under the New Tax Law.

SEE ALSO: FAQs About Passing an IRA to Your Heirs

EDITOR'S PICKS

Copyright 2018 The Kiplinger Washington Editors

More from Kiplinger.com

See more stories in this category

Back to Previous Page

Ask Kim

A Tax-Friendly Way to Get Income for Life

[Question]I heard that you can use $130,000 in an IRA to buy a deferred-income annuity without having...

How Tracking Rewards Good Drivers

[Question] My insurer offers a data-tracking program that gives a discount based on my driving habits...

Adding a Roth IRA in Retirement

[Question] I retired as a real estate agent, but I still receive a few thousand dollars a year for...

How New Grads Can Buy Health Insurance

[Question]My daughter just graduated from college and doesn't yet have a job that offers health...

Sales Tax Holidays for Hurricane-Prep (and...

[Question]I know that many states have sales tax holidays during the summer to pay for back-to-school...

Next Page >
Provided by Kiplinger