Saturday, November 1, 2008

Case of the Week: Standard Deduction and the IRA Rollover

Case of the Week: Standard Deduction and the IRA Rollover
Case of the Week: Standard Deduction and the IRA Rollover
Thanks to The Dallas Foundation for connecting us to the GiftLaw Case of the Week:
CASE
Judy was a retired nurse and a volunteer for her favorite charity. During her working years Judy had never enjoyed a large salary. Fortunately, a portion of her income was regularly transferred to her retirement plan for almost 40 years. With good investments and tax-free growth, Judy's retirement plan had increased to over $435,000.

QUESTION
Judy is now age 78, owns her home and has more income then she needs. Each year she makes a gift of $1,000 to her favorite charity. Because she does not have home mortgage interest or enough other deductions to itemize, Judy takes the standard deduction. But she has heard about the IRA charitable rollover and wonders if that will be a good option. She asked her best friend, "Do you think that I should give the $1,000 from my IRA?"

SOLUTION
To view the solution to this Case of the Week, Click Here.


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