Charitable IRA Transfer

Submitted by [email protected] on Mon, 2007-08-13 20:39

PPA of 2006 allows up to 100k to be transfered to a charity. Is this just for individuals older than 70 and 1/2? Or can other retirees take advantage?

thanks in advance

Mike



Submitted by [email protected] on Tue, 2007-08-14 14:56

It is for IRA owners over age 70 1/2. It is also available for inherited (beneficiary) IRAs, as long as the new owner (beneficiary) is over 70 1/2.

Submitted by Janine Janine on Sun, 2007-08-19 19:05

As long as you do not exceed the limit of $100,000, can you make direct tranfers from the IRA to several different charities? Does the Custodian of the IRA take care of any paper work? And how do you report these transfers on Income Tax return?

Thank you for any help.

PS I much prefer the old forum! It was far easier to use.

Submitted by Alan Spross on Mon, 2007-08-20 00:00

Yes, there is no limit on the # of QDCs made in a year, just the aggregate limit. The burden of reporting basically falls on the taxpayer since the IRA custodian will code these like other distributions on Form 1099R without any special coding. However, the taxpayer then claims the “QDC” on line 15b of Form 1040 as explained on the 1040 Inst (2006), p 25. The amount showing on 15b is any remaining taxable amount that did not go to the charities.

The distribution must be made directly to the charity or can be hand delivered by the taxpayer, but the check MUST be made out to an approved charity and NOT to the taxpayer. Taxpayer must have attained age 70.5 by the date of the QDC distribution.

Submitted by Joseph Hart on Tue, 2016-03-08 18:26

Is there a way to take one Qualified Charitable Distributions as Required Mandatory Distribution to an account or foundation that I could then distribute my support to different charities on a monthly base? e.g. http://www.fidelitycharitable.org/ I have about 12 charities my wife and I support every month. The amounts range from $25 to $350. I would like to reduce my taxable income so we will not hit some of the limits that eliminate deductions or increase taxes.

Submitted by Alan - IRA critic on Tue, 2016-03-08 19:31

A donor advised fund is not eligible to receive a QCD donation per Q 35 of IRS Notice 2007-7 copied here: 

Q-35. Is the exclusion for qualified charitable distributions available for a   distribution made to any organization eligible to receive charitable contributions that are   deductible by the donor for income tax purposes?   A-35. No. Qualified charitable distributions may be made to an organization   described in § 170(b)(1)(A), other than supporting organizations described in   § 509(a)(3) or donor advised funds that are described in § 4966(d)(2). 

Submitted by Erwin Buck on Sun, 2016-02-14 21:04

I understand a person must be 70 1/2 or older to have thier RMD gifted to a qualifying charity and forego taxes on the RMD. Can a beneficiary of an IRA who is younger than 70 1/2 take and get taxed on their RMD and in addition gift additional IRA money to a charity without tax consequences?  

Submitted by Alan - IRA critic on Sun, 2016-02-14 21:52

If beneficiary is under 70.5, they could request a distribution directly to the charity, but it would not be a QCD and would not be excluded from AGI. The beneficiary might be in a position to itemize the contribution on Sch A, but reduction of taxable income often produces a lesser benefit than exclusion from AGI.

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