DONations_MEDIUM_Dollarphotoclub_104179101You can make cash donations to IRS-approved charities out of your IRA using so-called “qualified charitable distributions” (QCDs). This strategy may be advantageous for high-net-worth individuals who have reached age 70 1/2. It expired at the end of 2014, but QCDs were made permanent for 2015 and beyond under the Protecting Americans from Tax Hikes (PATH) Act of 2015.

To take maximum advantage of this strategy for 2016, you’ll need to replace some or all of this year’s IRA required minimum distributions (RMDs) with tax-advantaged QCDs. Click here for more details.