charitable IRA distribution
Can a Charitable IRA distribution be included in a RMD amount? In other words, if a client owes $70,000 for 2016 RMD, can they take a 50,000 RMD withdrawal from the account and make a $20,000 direct transfer to their church and effectively have included in their taxable income $50,000 for the year?
Permalink Submitted by Alan - IRA critic on Tue, 2016-04-12 20:57
Yes. That would work for this example, since the QCD is less than the RMD. But if the QCD were more than the RMD, then be sure to do the QCD first so that it is all credited against the RMD.