This fall, older savers who are feeling generous may want to consider using their individual retirement account to help fund their favorite charities.
There’s an incentive for being altruistic: It could help retirees manage their Medicare premiums in 2022.
People age 70½ and over can make so-called qualified charitable distributions from their IRAs. In this transaction, an IRA owner directs the custodian holding the account to transfer up to $100,000 to a charity.
Private foundations and donor-advised funds — tax-advantaged funds for giving — are not eligible to receive qualified charitable distributions.