Tax-free direct transfers from IRAs to charity are now especially taxwise because fewer clients can deduct their charitable gifts. The increased standard deduction reduces itemizers from over 30% to under 10% of taxpayers. And the $10,000 SALT (state and local taxes) limitation also results in few itemizers.

The tax benefit for charitable IRA gifts isn’t a charitable deduction. Rather, otherwise taxable income—including Required Minimum Distributions (RMDs)—isn’t taxable. Not being taxed on income is the equivalent of a charitable deduction. This makes an IRA charitable gift a WMD—a Weapon of Mass Deduction.

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