Older investors gain tax advantage from IRA charitable distributions
Updated
Updated · Barron's · May 9
Older investors gain tax advantage from IRA charitable distributions
3 articles · Updated · Barron's · May 9
Under this year's rules, people aged 70½ and over can give up to $111,000 from IRAs, or $222,000 for couples with separate accounts.
The One Big Beautiful Bill Act now limits itemized charitable deductions with a 0.5% adjusted-gross-income floor and a 35% cap on deduction value, making QCDs comparatively more attractive.
QCDs can satisfy required minimum distributions from age 73 while keeping gifts out of taxable income, potentially lowering Medicare premiums and preserving income-sensitive tax breaks if strict transfer rules are met.
Your IRA can't fund a Donor-Advised Fund. What tax-smart giving strategies are you missing out on now?
With new caps on deductions, is a direct IRA gift now always better than donating appreciated stock?
New tax laws may shrink total donations. How should charities adapt their fundraising strategies to survive?