Charitable IRA Distribution
Regarding the maximum annual limit of $100,000 per IRA owner defined under the Charitable IRA Rollover extension….is it limited only to the amount of the RMD up to $100,000? For example, if my RMD is $30,000, can I still donate another $70,000 directly to a charity and it NOT be included in my income?
Thanks!
Permalink Submitted by Alan Spross on Sat, 2011-01-15 21:22
Yes, you can contribute up to 100,000 of pre tax IRA value for 2010 (1/31/2011 deadline) and another 100,000 for 2011. The QCD will cover your RMD up to the amount of your RMD but not more than 100,000. If you took your RMD earlier in 2010 and still wish to make a 2010 QCD now, you can do that but it will not cover your RMD. In that case your RMD would remain taxable.
For 2011 just be sure to make your QCD before you take any other distribution or that other distribution will be credited against your RMD and prevent you from using the QCD for your RMD.
Also note that if you make your 2010 QCD now, it will be deducted from your year end IRA balance and result in your 2011 RMD being lower than it would have been. Same effect as if you had made the QCD prior to year end 2010.