IRA Charity Deduction

In 2011 if you have an IRA and you are over age 70 1/2 you can do a direct charitable transfer up to $100,000 and exclude it from your income.  If you take a $100,000 distribution personally and then donate the money, the income makes your social security fully taxable and limits your ability to take your full Schedule A deductions.  Schedule A is where you deduct your charitable donations.  If you make the transfer in January 2011 you can treat it as made in 2010.