Did you know that if you are over 70 and a half years old you can donate tax-free directly from your IRA to a qualified charity, such as Project Citizenship?

An IRS provision allows retirees age 70 ½ years and older to donate up to $100,000 annually.

Generally, when you take a distribution from your IRA, it is treated as taxable income. Under this provision, the assets are excluded from income if the distribution is made directly to charity thus avoiding any regular IRA withdrawal effects. Distributions excluded from income are also equivalent to a 100% deduction. Normally, charitable contribution deductions are limited to a lower percentage (or are eliminated altogether) for taxpayers who do not itemize and take the standard deduction. To learn more about how to donate from an IRA, click here to access our cheat sheet.