Charitable Deduction of RMD from Single 401(k)
Does a distribution of the RMD amount from a Single 401(k) directly to a charitible organization qualifify for the charitable deduction in 2011? If not, then would the RMD be charachterized as income to the owner and the charitable contribution would then become itemizable??
Permalink Submitted by mk foss on Thu, 2012-02-23 04:41
If someone had their 2011 401(k) RMD sent directly to charity, it would be taxable to the 401(k) participant and a charitable dedcution would be available for the amount transferred. As Tom pinted out the QCD rules expired again at 12/31/11. They were only ever available to IRA distributions and could only satisfy RMD requirements of an IRA.
Permalink Submitted by coleen smith on Sat, 2012-04-14 05:25
The charitable contribution deduction is one of the most commonly abused by taxpayers, and the Internal Revenue Service knows it. As a result, the tax bureau examines these items closely. Nobody wants to pay any more than they have to for federal income tax, but unless a charitable contribution is valued fairly and reported correctly, a taxpayer would be better off not declaring it at all. However, there are some recommendations that may help to avoid the auditor’s gaze and get every cent coming to you. Read here: [url=https://personalmoneynetwork.com/moneyblog/2012/02/23/deduct-charitable-… charitable gifts and avoiding an audit[/url]