qualified charitable IRA deduction
Since the raise of the RMD to 72, is the QCD still okay for those who are 70 1/2 and not taking the RMD?
if they don’t have an RMD, but are taking IRA distributions after 701/2 can they still do a QCD?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Thu, 2023-06-01 16:27
A QCD can be done at age 70.5 from either an owned or inherited IRA account, regardless of whether an RMD is due or not. If done prior to RMDs, the QCD will not be taxable, but it will not reduce current year taxable income. What it will do is reduce the IRA balance which will reduce future RMD amounts once they begin.
Permalink Submitted by Douglas Bauerband on Thu, 2023-06-01 18:15
I’m a little slow, please excuse me on your statement of: “If done prior to RMDs, the QCD will not be taxable, but it will not reduce current year taxable income.question: If the QDC is not taxable and he receives a 1099 (lets say) for 5k, the 5k is not added to his current income. Therefore his current income stays the same since the 5k is not taxable, correct?Thank youDoug
Permalink Submitted by Alan - IRA critic on Thu, 2023-06-01 19:17
Yes, that is correct. The 5k would be reported on line 4a of Form 1040, “QCD” would be shown next to line 4b, and 4b itself would be 0 (non taxable).