Personal Finance News Tuesday 9/25

Phil's Personal Finance Tip of the Day:
Should You Wait on IRA Donations?
By ANNE TERGESEN/The Wall Street Journal

Many experts are betting that Congress will revive a popular tax provision that allows those ages 70½ or older to save on taxes while donating assets in their individual retirement accounts to charity.

But if you intend to give money to charity this year, don't wait for Congress to act.

The charitable IRA rollover provision, which expired at the end of last year, allowed IRA owners ages 70½ or older to donate up to $100,000 of their IRA assets to a charity. The donor didn't receive a tax deduction for the contribution. But he or she didn't have to report the IRA withdrawal as taxable income, either. And the contribution could count toward the annual required minimum distribution, or RMD, that people 70½ or older must take from a traditional IRA.

For many taxpayers, this "leads to a better outcome" than taking a tax deduction for a charitable contribution, says Ed Slott, an IRA expert in Rockville Centre, N.Y.

Why? By reducing your adjusted gross income, the tax provision may help you keep it below the thresholds at which you could lose some of your deductions and other tax benefits, or become subject to higher Medicare premiums and taxes on your Social Security benefits.

To read the entire article from The Wall Street Journal:
http://online.wsj.com/article/SB10000872396390444450004578002112287693002.html?mod=WSJ_PersonalFinance_PF14


Scripture of the Day from Dave Ramsey.com:
Philippians 4:13 — I can do all things through Christ who strengthens me.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.