IRA distributions donated to charity
I have a client who is 65 and wants to make a charitable contribution to an accredited charitable institution. im not sure of the mechanics of this but is it as simple as doing the IRA distribution for say $30k then generating a 1099R to the client? Will the CPA or the client know to offset this or does the money have to go directly to the charitable institution? Either way my understanding is that a 1099R WILL be generated. Thanks in advance
Permalink Submitted by Alan - IRA critic on Mon, 2019-07-15 19:03
This cannot be done as a QCD because client is not yet 70.5. Whether she has the custodian make the check payable to the charity or to her, the 1099R generated will be the same and must be reported in taxable income. She may or may not be able to itemize deductions including this charitable deduction.