QCD Extension to 2012???????
Does anyone have anything to report about the possibility of the Qualified Charitable Distribution law getting extended past 12-31-2011?
Does anyone have anything to report about the possibility of the Qualified Charitable Distribution law getting extended past 12-31-2011?
Permalink Submitted by Alan Spross on Mon, 2011-12-05 21:19
No. This is up to Congress. Anyone’s guess what they will do – or when.
But they are a year ahead of where they were in 2010, when they approved it retroactively to January 2010. So Congress could put you in the same position as you were in 2010 if they do not act before year end. As 2012 unfolds without the QCD, you will not be able to take your RMD until late in the year just in case Congress retroactively extends the QCD for 2012 at the end of 2012 rather than now.
This is the way they do things now, and you can be sure that the IRS does not appreciate it either.
Permalink Submitted by mk foss on Tue, 2011-12-06 00:15
It seems to me that if someone receiving RMDs requests a check made payable to a charity other than to the individual – it will be taxed to the IRA owner. This differs from the QCD in that it could increase Adjusted Gross Income and increase charitable deductions. If someone will definitely itemize for 2012, using this strategy will allow one to make planned charitable contributions early instead of waiting for Congress to act late in the year. Possible downsides would be that the increased adjusted gross income affects medical deductions, miscellaneous itemized deductions, and possibly the amount of social security taxed currently and future Medicare Part B premiums. If none of those items are a factor, I’d advise people not to wait.