#2 Make Charitable Contributions From RMDs

RMDs, or required minimum distributions, are part of the traditional IRA accounts that can be used to make some charitable donations during the year. This only applies to seniors over the age of 70.5 years. Yet, it is a great way in which you can exclude up to $100,000 from your taxable income just by giving away some money to a charity of your choice.

What’s more, making these donations from your IRA account and thus from your required minimum distributions can help you receive a tax benefit on the contributions without needing to itemize. Even better, this income will not be added to your overall taxable income for the year, which can translate into fewer taxes on your Social Security benefits!