Increasing the IRA Required Minimum Distribution (RMD) age from 70½ to 72 would adversely affect tax-free IRA gifts. Current law (enacted in 2006) authorizes tax-free direct transfers to public charities (except Donor Advised Funds and Supporting Organizations) of up to $100,000 annually by individuals 70½ or over. Those transfers to charity are tax-free including RMDs. Although charitable deductions aren’t allowed, the withdrawals aren’t taxable. Not being taxed on income is the equivalent of a charitable deduction.

This, in effect, gives a charitable deduction to taxpayers who take the standard deduction (and there are many more of them now that the standard deduction has been doubled).

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