While rolling over funds can translate into tax-free income available down the road, you also pay taxes on the amount moved — which means no future opportunity to reduce that rate further.
If you give money to charity each year, keeping money in your traditional IRA to make those donations could make sense.
In contrast, the tax break for charitable contributions — like the break for medical expenses — can only be used if you itemize your deductions. And, generally speaking, a deduction is not as valuable as an income exclusion. "If your RMD is $5,000, but you give $5,000 to charity anyway, do the qualified charitable distribution and you don't have to pick up any of the income," Slott said.As is the case with the deduction for medical expenses, business losses can only be claimed on your tax return if you have income to claim them against.
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