IRA 2010 RMD to Charity
Can my 2010 IRA RMD be given directly to an charity for 2010?
If not can you provide the IRS link that explains it can’t be done.
Thanks in advance.
Joe
Can my 2010 IRA RMD be given directly to an charity for 2010?
If not can you provide the IRS link that explains it can’t be done.
Thanks in advance.
Joe
Permalink Submitted by Joseph Arsenault on Tue, 2010-07-20 21:49
The $100,000 exemption that applies to IRA owners older than 701/2 for qualifying charitable donations has not yet been extended. It is part of this years extenders bill (HR 4213) in the Senate but has continued to stall for other reasons (like the additional S Corp tax strongly debated). It is not a matter of finding an IRS link that explains it can’t be done, it is a matter of waiting until legislation goes through and extends what CAN be done. If it does get extended, at the end of the year you would be able to directly transfer your RMD to a 501(c)(3) charity and therefore not recognize the income (assuming your RMD keeps you under $100k in total of what has already been gifted this way).
Permalink Submitted by Alan Spross on Tue, 2010-07-20 21:58
Following is a link showing all the tax provisions that expired 12/31/2009. Scroll down to Other Provisions – Sec 408. Since the extenders bill is still pending, it would be wise to wait longer to take your RMD, so it can be covered by the charitable transfer. You might well have to wait until after the election for Congressional action on this, and budget concerns seem to be ramping up and the QCD has a definite cost to the Treasury.
http://www.journalofaccountancy.com/Web/20092459.htm