RMDs to Charity

Submitted by Nick Pappas on Tue, 2014-09-30 13:45

I believe at one time one could give their RMD to a charity and avoid paying taxes on it. If so, is this still allowed and what are the rules or the source where I can find the rules.

Thanks in advance!
Nick



Submitted by Jim Shope on Tue, 2014-09-30 17:13

  • Hi Nick,
  • Did you see this article?  It states that we will have to wait and see (as of 8/13/14) if congress brings it back:
  •  It expired at the end of 2013.

Submitted by Alan - IRA critic on Tue, 2014-09-30 18:57

Same limbo sitution we have been in the last few even numbered years. Congress does not extend the QCD until December of the applicable year and they do it retroactively. Even numbered years are also election years, so of course nothing can get done before the elections. So far the QCD has eventually been extended every time, and it probably will be again, but not until seniors have worried about completing their RMD the entire year because you cannot take your RMD before the QCD or the QCD will not replace the RMD. This is dysfunction at it’s worst. No doubt that the IRS is as disgusted about this pattern as taxpayers are.

Submitted by tomd37 on Tue, 2014-09-30 23:13

My Vanguard rep told me last week that they will process a QCD request now and send me the check for mailing to the charitable organization.  If the law changes later in the year or very early next year, it will qualify as a QCD.  If the law is not changed it will qualify as a itemized deduction if I elect to use Schedule A. I was not sure if they would process such a request at this point in time in the year, but they will.   Tom D.

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