Advertisement
taxes

Minimum Age for Tax-Free IRA Gifts to Charity

You can donate money directly from a traditional IRA to a charity without triggering taxes – but only if you meet a strict age requirement.

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.

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.

Advertisement - Article continues below

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.

Advertisement
Advertisement - Article continues below
Advertisement

Most Popular

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)
tax deadline

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)

Between due dates for IRA or HSA contributions, paying estimated taxes and other deadlines, there's more to do by July 15 than just filing your federa…
July 10, 2020
65 Best Dividend Stocks You Can Count On
stocks

65 Best Dividend Stocks You Can Count On

These 65 Dividend Aristocrats are an elite group of dividend stocks that have reliably increased their annual payouts every year for at least a quarte…
July 8, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020

Recommended

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)
tax deadline

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)

Between due dates for IRA or HSA contributions, paying estimated taxes and other deadlines, there's more to do by July 15 than just filing your federa…
July 10, 2020
Saver's Credit: A Retirement Tax Break for the Middle Class
Tax Breaks

Saver's Credit: A Retirement Tax Break for the Middle Class

Your retirement contributions could be the key to a lower tax bill.
July 9, 2020
8 Ways You Might Be Cheating on Your Taxes
taxes

8 Ways You Might Be Cheating on Your Taxes

Don't fall into these common traps that can get you in hot water with the IRS.
July 8, 2020
2020 Tax Deadline: When Are Tax Returns Due This Year?
tax deadline

2020 Tax Deadline: When Are Tax Returns Due This Year?

The April 15 deadline for filing your 2019 federal income tax return (and paying taxes) has been moved back...but the new due date is approaching fast…
July 8, 2020