distribution out of IRA to non profit organization non taxab
distributions out of IRA to non profit organizations are non taxable. correct? what is the maximum allowed per IRS?
distributions out of IRA to non profit organizations are non taxable. correct? what is the maximum allowed per IRS?
Permalink Submitted by Alan Spross on Thu, 2008-12-04 18:04
100,000 is the maximum qualified charitable distribution, and you are correct that they are not taxable, but still must be reported on Form 1040 as a QCD on line 15. Also note that the taxpayer has to have reached age 70.5 when the transfer is made. These transfers count toward any RMD requirement as well on an owned or separately for an inherited IRA.
Permalink Submitted by Stephen Arnold on Thu, 2008-12-04 21:32
Also note that this perk from the Pension Protection Act was only extended through 12/31/09.
Additionally, ensure that the custodian distributes the funds directly to the qualified charity. You cannot receive the funds and then fund the charity yourself.
Permalink Submitted by mk foss on Sun, 2008-12-07 01:09
The custodian can make a check payable to the charity and send it to the account owner for delivery and still achieve the desired tax result.
When the custodians send the funds directly to the charity, the owner’s name is normally not included. The charities don’t know who to thank and the donees are not getting recognition when the funds go directly.