2007 Year End Tax Tips - Tip #5

A Generous Way to Avoid Taxes on Required IRA Distributions

As the end of the year nears, NBR offers some pointers that could help you lighten your tax load come April. Tonight, our tax guru, Kevin McCormally of Kiplinger's Personal Finance, says you'd be a wise taxpayer if you consider directing some of your required IRA distributions to charities.

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External Links/Articles*

• Internal Revenue Service (IRS)
  This links to a copy of IRS publication 590 for tax year 2006, which focuses on Individual Retirement Arangements (IRAs). This is a copy of the publication for use in preparing 2006 Returns. The IRS will soon update it for the current tax season.
• National Committe on Planned Giving (NCPG) (PDF Document)
  The NCPG is an "association for professionals in the charitable gift planning field." This links to a January 18, 2007 report published by the organization titled, "NCPG Survey of IRA Distributions to Charity." It looks for changes in charitable distributions since the Pension Protection Act of 2006 became law.
• Northwestern University (PDF Document)
  This links to a brochure published by Northwestern University's Feinberg School of Medicine. The brocure is titled, "The IRA Charitable Rollover: A New Incentive for Charitable Giving." It offers a bullet point explanation of the new rules for IRA distributions to charities.

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.