Retirement savings options have changed dramatically since individual retirement accounts (IRAs) were created more than 30 years ago. For many individuals, IRAs and similar vehicles such as 401(k), 403(b), and Keogh plans remain popular ways to help prepare for a comfortable post-career lifestyle by postponing tax payments on earnings while you work. They also can be a valuable part of a charitable giving program.

For such plans, you will face tax costs when you eventually start taking distributions, in many cases as required minimum distributions (RMDs) at age 70½. Depending on your tax situation, you could face a sizeable tax bill because distributions from these accounts are taxed as ordinary income, possibly at a rate as high as 35%.

IRA distributions for charitable purposes
Donating ROTH IRA money
Donating appreciated company stock in a retirement plan
Addressing the tax concerns of heirs
Naming a charitable organization as beneficiary

Return to Tax Value Home Page