RMD Charitable Gifts
Assume a person has a $400,000 IRA and is over 70 1/2. And further assume their RMD is $12,000. And finally assume they are taking withdrawals of $2,000 a month.
Their $24,000 distribution obviously exceeds their RMD. But in addition to the $24k, can they also take another $5k and donate it to their church?
By that point, they would have taken out $29k, which is far in excess of their RMD. I’m confused about any sort of cap that applies other than the $100,000 overall donation limit.
Permalink Submitted by Alan - IRA critic on Wed, 2016-03-23 19:49
There is no cap other than the 100k limit for QCDs. A QCD can be more or less than the RMD amount, but for some people there can be timing issues because the first distributions in any year are automatically deemed to apply to the RMD amount. Since this person distributes more than their RMD amount however, it does not matter when the QCD is done. So they can do the QCD distribution anytime during the year and it will not be included in their AGI. Their AGI will be 24k and the RMD is satisfied with or without the QCD.
Permalink Submitted by DENNIS BLANKENSHIP on Fri, 2021-09-24 15:33
Great Q&A on charitable gifts. Would a gift to my adult child from my RMD have the same impact on my AGI?
Permalink Submitted by Alan - IRA critic on Fri, 2021-09-24 17:17
No. A QCD must be made to a qualified charity, not to a person.