Submitted By: Will
Answered: December 16, 2016 1:00 pm

I’m 72 years old and want to use the required minimum distribution amount from my IRA to benefit several charities. Can I do this?

Yes. Those age 70-1/2 and older can transfer up to $100,000 annually directly from an IRA to a public charity. The distribution is not taxed, although no charitable contribution deduction can be taken. This qualified charitable contribution rule has been made permanent. There is no restriction on splitting the distribution among several charities as long as they are public charities (not private foundations).

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Tax Glossary

Foreign tax credit

A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?

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