From Boca_Pete on SiliconInvestor at 12/15/2013 5:57:28 PM
On today's Moneytalk Program in the 2nd hour, Brinker discussed the available opportunity for those over 70-1/2 yrs old to get a charitable donation deducted from one's taxable received "required minimum distributions" from one's pre-tax IRA savings, BUT BRINKER FAILED TO MENTION THE MOST IMPORTANT THING YOU HAVE TO DO to accomplish this objective
- THE FINANCIAL INSTITUTION HOLDING one's PRE-TAX IRA ACCOUNT, MUST pay one's chosen charities directly - THEY MUST CUT A SEPARATE CHECK PAYABLE TO EACH OF YOUR CHOSEN CHARITIES!
- Such taxpayers then get to exclude from taxable income (from "Adjusted Gross Income" also) the total of such directly made donations making them not subject to income taxation.
IF THE TAXPAYER IS ON THE CUSP OF A TAX BRACKET INCREASE; such reductions to taxable income (and AGI) could have some or all of the following impacts on the taxpayer:
- Could lower means tested Part-B Medicare Premiums deducted from received monthly Social Security checks.
- Could cause avoidance of the additional 3.8% surtax on investment income.
- Could lower the tax bracket for figuring income tax liability on taxable income.
HOW DO I KNOW ALL ABOUT THIS? I just personally went through the process with Brinker's favorite mutual fund family in Valley Forge, PA! While they have forms for this stuff, they'll do it all over the telephone if you have your list of chosen charities and related donation amounts ready to communicate. You get their prepared checks in the mail for photcopying and mailing in with each charity's donation forms.
I wonder how many listeners will now act on Brinker's misleading incomplete radio advice by writing their own personal checks to charities, instead of getting their mutual funds or other financial institutions to pay such charities directly as required by the IRS laws??
THE MOTTO FOR HEARING TAX ADVISE ON THE RADIO = MISTRUST and VERIFY!
Ah but Bob sure does those radio voice inflextions well, doesn't he!
Best wishes for a Merry Christmas and HAPpy New Years,