A tax preparer from one of our congregations passed on this tip to make your contribution count for now and eternity. It is quoted from an article out the the Minneapolis Star Tribune. The article quotes Mike Rogers of 360 Financial in Minneapolis as he discribes a recently signed act.This can be used for charitable contributions to your chruch or to missions.
"The law also gives charitable minded seniors a little relief. It allows individuals older than 70½ to contribute IRA money directly to charities without paying income taxes on the distributions. In fact, if you are so inclined, you can donate your entire required minimum distribution to charity tax-free.
"If you're over 70½ and are required to take minimum distributions, we recommend that you stop writing checks to charities from your personal account and donate directly through your IRA," Rogers said. "That can save you a lot in income taxes."
But that rule is in effect only for 2006 and 2007 — unless legislators vote to make the change permanent."
