Example: Charitable IRA Distributions for 2007

Suppose Mary has $700,000 in an IRA and will be required to withdraw approximately $35,000 this year.  

Suppose also that Mary wants to contribute $10,000 to the Sisters of the Holy Cross.  

She can authorize the trustee of the IRA to transfer $10,000 to the Sisters and $25,000 to herself.  The $10,000 distributed to charity will not be subject to income tax.

Example provided courtesy of PG Calc.  

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