While you may initially appreciate the income, as time goes on the higher withdrawal requirements may push you into a higher tax bracket, increasing your taxes.
Congress made the IRA charitable rollover permanent. The rollover law allows taxpayers who are required to withdraw money from their IRAs to give directly to charity. Because the rollover may count against your required minimum distribution (RMD), making an IRA rollover gift to an organization like Boise State could reduce your income and taxes.
The IRA rollover is a great way to support your favorite causes. While you won’t receive an income tax deduction for a rollover gift, you also won’t pay any income tax on the transfer.
The transfer only works for IRAs and not other retirement accounts. Check with your tax advisor or contact us to learn more about how you can use your RMD for good and lower your taxes.
