QCD from other than Trad IRA
I am reviewing the PUB 590-B Qualified Charitable Distributions section. The way it reads is that the QCD is only available for the Trad. IRA. But in the February Ed Slott newsletter, QCDs are allowed from SEP, SIMPLE and Inherited IRAs. What am I not understanding in my reading of the two publications?
Permalink Submitted by [email protected] on Tue, 2019-03-05 00:07
Permalink Submitted by [email protected] on Tue, 2019-03-05 00:26
thanks———
Permalink Submitted by [email protected] on Wed, 2019-03-06 00:18
A Roth withdrawal can be a taxable event, but usually not.Roth IRA (if the withdrawal is not taxable) is not a QCD because The exclusion is only available to the extent that the distribution would otherwise have been includible in gross income, and § 408(d)(8)(D) provides a special rule for determining the amount that would otherwise be includible in gross income. In addition, the exclusion applies only if the contribution would otherwise qualify for a charitable contribution deduction under § 170 (without regard to the percentage limitations of § 170(b)). A distribution that is eligible for this exclusion is called a qualified charitable distribution.
Permalink Submitted by [email protected] on Wed, 2019-03-06 03:20
Good point. There are several reasons not to use a Roth for a QCD, but here are some observations.