Charitable contributions as RMD’s
IF a client has a SEP, he’s 73 yrs old, no more contributions are being made…Can he have checks issued out of it ….made payable directly to the charity and not be taxed on the distribution? I’m asking because I’ve read this feature is not allowed for SEP’s or SIMPLE’s……..Thanks…
Permalink Submitted by mk foss on Fri, 2009-11-13 18:58
The direct transfer of IRA funds to charity is still available for 2009. The amounts can come from a SEP provided that no current contribuiions are being made to the SEP. Also the taxapayer must be over age 70.5 – so you’ve met that one as well. The limit is $100,000.
Since there are no RMDs required for 2009, you don’t have to worry about the charitable contribution replacing the RMD but otherwise it works the same way as the law in effect for 2006-2008.
Permalink Submitted by James Rosato on Fri, 2009-11-13 20:40
Thank you…That helps……