Wealth Advice: IRA Charitable Donation

Wed, NOV 23rd, 2011

With the end of the year fast approaching I found this advice timely and useful. It was written by Debbie Knotts, one of our many astute Financial Advisors here at Albion. It’s a quick and insightful piece highlighting a topic with a commendable message.

Jason Ware Market Strategist, Analyst (801) 487-3700; (877) 487-6200


In our role as financial advisors we work with many of our clients each year to assist them in determining the best way to meet their charitable goals. The provision allowing IRA owners over the age of 70 ½ to make charitable donations from their individual retirement accounts is set to expire the end of this year. The Charitable IRA Rollover Provision included in the 2010 Tax Relief Act extended the ability of IRA owners  to make charitable donations from their individual retirements accounts for 2010 and 2011.

This provision allows taxpayers age 70 ½ or older to make a total of $100,000 in gifts to one or more qualified charities using IRA assets. The donor gets no tax deduction and does not have to report the gift as income. The contribution can satisfy the IRA account holder’s required minimum distribution for 2011 as well. The gift must pass directly from the IRA custodian to the charity. We recommend that clients include their tax advisor in the decision of whether or not this is the most tax-efficient way to donate to a charity during their life.

Debbie Knotts, CFP Albion Financial Group dknotts@albionfinancial.com

About Albion Financial

Established in 1982, Albion Financial Group is an independent, fee-only financial planner and investment manager located in Salt Lake City, Utah.