Qualified Charitable Distributions
Ed, regarding the new tax laws for QCD’s for the year 2019. Can I take my RMD for 2019 and apply this amount to my granddaughters education fund and receive the tax benefits? Jim
Ed, regarding the new tax laws for QCD’s for the year 2019. Can I take my RMD for 2019 and apply this amount to my granddaughters education fund and receive the tax benefits? Jim
Permalink Submitted by Alan - IRA critic on Sun, 2019-02-03 18:28
Your QCD must be made payable to a qualified charity, generally one that you could claim a charitable deduction for if the donation was not a QCD. Donor advised funds and most private foundations are not eligible. Therefore, you could not use a QCD for a donation to whatever type of education fund has been established for your grandchild. QCD rules were not changed in 2018 or 2019. If you are going to donate to a qualified charity at all, you should still do a QCD rather than donating from your other funds.