Permalink Submitted by Alan - IRA critic on Tue, 2020-09-22 17:24
A QCD can be for less than the RMD, equal to the RMD, or more than the RMD but not more than 100k. You want to be sure to make the QCDs before you complete your RMD, otherwise you will still be taxed on the RMD. For a simple example, if you wanted the QCD to be 20,000 and your RMD was 12,000, you would just have a 20,000 QCD check issued to the charity and your RMD would be taken care of. You would report the 20,000 distribution on your return and indicate “QCD” next to line 4b of Form 1040 and 0 on 4b. There would be no taxable income.
Permalink Submitted by Alan - IRA critic on Tue, 2020-09-22 17:24
A QCD can be for less than the RMD, equal to the RMD, or more than the RMD but not more than 100k. You want to be sure to make the QCDs before you complete your RMD, otherwise you will still be taxed on the RMD. For a simple example, if you wanted the QCD to be 20,000 and your RMD was 12,000, you would just have a 20,000 QCD check issued to the charity and your RMD would be taken care of. You would report the 20,000 distribution on your return and indicate “QCD” next to line 4b of Form 1040 and 0 on 4b. There would be no taxable income.