FYI: Two IRA Tax Breaks Will End Soon

A colleague of mine sent me the below info on two tax provisions which are scheduled to expire after December 31, 2009.  Here’s how they might impact you:

1.  For 2009 only, you have the option of skipping your required minimum distribution (RMD) from traditional IRAs and certain other qualified pension plans. This suspension of the RMD rules applies to distributions you would have had to take because you’re over age 70½ or are the beneficiary of an inherited traditional or Roth IRA.

If you took a distribution earlier this year and would like now to reverse it, you have the later of 60 days from the distribution date or November 30, 2009, to roll the money back into a retirement plan.

2.  If you’re 70½ or older, you can make a 2009 donation of up to $100,000 directly from your IRA to a qualified charity without treating the donation as a taxable IRA distribution. (Distributions from employer-sponsored retirement plans - including SIMPLE IRAs - are not eligible.)

No charitable deduction is allowed for the donation unless nondeductible contributions are transferred.  In that case, a charitable contribution deduction may be allowed if you itemize deductions on your tax return.

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