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One of the more overlooked provisions of the so-called Fiscal Cliff tax deal that arrived just in time for the market open January 2, 2013 is the renewed allowance of Qualified Charitable Distributions (QCDs) from Individual Retirement Accounts (IRAs).
FORBES: Congress Ends Punishment Of Charities And Retirees...For Now
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But it is my hope and prayer that Congress gets off its self-centric butt and makes Qualified Charitable Distributions a permanent part of our tax code. (Can you hear the crickets chirping?) This would allow the charitably inclined and qualified charitable organizations to make predictable plans to pursue their worthy missions, tax free.
FORBES: Congress Ends Punishment Of Charities And Retirees...For Now
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However, IRA and qualified retirement plan distributions and taxable portions of social security do raise your modified adjusted gross income, and this, of course, can push you over the threshold that triggers the 3.8% tax.
FORBES: Start Planning for Higher Taxes