The Pension Protection Act of 2006 provides that an individual who has attained the age of 70 & 1/2 can instruct an IRA plan trustee to make a transfer of IRA distributions to a Code Section 170(b )(1)(A) charitable organization, and exclude up to $100,000 of such distributions from income, instead of claiming the contributions as an itemized deduction subject to AGI limitations.
To enter in the program:
- Go to the Input Return tab.
- On the left navigation menu, select Income > Pensions, IRAs (1099-R).
- Enter the Payer, Gross Distribution, and Taxable Amount as normal.
- Click the Details button to view more input options.
- Scroll down to the Other Information section.
- Locate the Charitable IRA Distributions subsection.
- Enter the amount in IRA distributions transferred to qualified charity.