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If offered to a charity, policies which limit the sum that could be deducted as a charitable contribution would have to be adopted. This implies that they may still have to spend tax on a part of their IRA withdrawals.
But many thanks to provisions in PPA 2006, Roger and Claire can make their gift to the Humane Culture and Monthly bill and Diane can spend off their church’s new organ making use of cash from their IRAs and not shell out any tax on the withdrawals. But they have to stick to the principles.
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