With the end of the year less than a week away, many people are starting to think about taxes and last-minute financial planning. For those over the age of 70, there is an option that can benefit both their tax situation and nonprofits in the community, explains Edward Jones Financial Agent Ryan Painter.
“If you’re over 70 and a half, you’re allowed to gift directly out of your retirement account to nonprofit organizations, like Freezing for Food or the Jamieson Community Center. You can do that without owing taxes on those distributions, even if you don’t itemize your deductions. A few years ago, tax laws changed and the standard deduction became so high that most people don’t itemize anymore. By using required distributions from a retirement account, you get the best of both worlds. You get the standard deduction, and you still get the tax benefit from making those charitable gifts.”
For more information, visit Ryan Painter at 112 South First Street in Monmouth.
