The best way to Donate to Charity, Get a Tax Break and Have Earnings for Life

Tax breaks for charitable donations are available in many flavors, and this 12 months Congress has a brand new one for seniors known as an IRA charitable present annuity. It permits older house owners of conventional IRAs to donate account funds to a charity and get tax breaks plus revenue funds for all times. 

Brian and Deborah Smith of Park Metropolis, Utah, plan to do this possibility subsequent 12 months. That’s when Deborah Smith turns 73 and has to start required withdrawals from her conventional IRA. She is going to donate $53,000 of her $550,000 account to the Episcopal church the place the couple is lively and Deborah serves on the board.