If you are 70 ½ or older, a newly reinstated law allows you to donate up to $100,000 from your traditional IRA or Roth IRA tax-free to a public charitable organization. The money can also come from a SEP or a SIMPLE IRA as long as you are no longer contributing to these accounts.

Under the law, any money you donate to charity from your IRA will count toward the annual withdrawals you’re required to take from these accounts after reaching age 70½.

If you itemize your deductions, you’ll also come out ahead. That’s because taxpayers whose adjusted gross incomes exceed certain thresholds lose some of their deductions and personal exemption amounts. By not adding $1,000 to your income, this gift might help you keep your income below these levels.

Those in a position to take advantage of the IRA Charitable rollover include those:

· who are already giving at their deduction limit

· whose income level causes the phase-out of their exemptions or itemized deductions

· for whom additional income will cause more of their Social Security income to be taxed

· who wish to remove up to $100,000 from their taxable estate

Take advantage of giving opportunities like the above or through donating the proceeds of a life insurance settlement.