Permalink Submitted by Alan - IRA critic on Wed, 2014-12-03 20:17
Not yet. Congress is still working on it. In recent years Congress has fallen into a pattern of irresponsible retroactive tax legislation that makes tax planning very difficult. It appears that the QCD will eventually be extended retroactively to 1/1/2014, but this may not be official until late this month, possibly even January.
Permalink Submitted by Don Warnke on Wed, 2014-12-03 23:23
if a person has to make the RMD by 12-31-2014, how will that work if they don’t pass it until 2015 since (as i understand) the money has to go from the custodian directly to the charitable organization?
Permalink Submitted by Thom K. Hall, CFP CEPA on Thu, 2014-12-04 21:25
I have a client turning 70 1/2 next year – do they have to wait until they actually turn 701/2 to make the contribution or can it be done at any time in teh year they turn like the normal RMD’s?
Permalink Submitted by Alan - IRA critic on Thu, 2014-12-04 23:38
The QCD cannot be done before the IRA owner reaches 70.5 to the day. The 2012 extension allowed IRA distributions not taken before 12/1 to be donated to the charity prior to 1/31/2013 by the IRA owner writing his own check. That allowed the donation to be treated as a 2012 QCD on the 2012 return. If the 2014 QCD is not extended before late December, we could well see this option repeated. Here is a complete explanation: https://www.kitces.com/blog/special-2012-lookback-rules-to-make-a-qualified-charitable-distribution-qcd-from-an-ira-in-2013/
Permalink Submitted by Alan - IRA critic on Wed, 2014-12-03 20:17
Not yet. Congress is still working on it. In recent years Congress has fallen into a pattern of irresponsible retroactive tax legislation that makes tax planning very difficult. It appears that the QCD will eventually be extended retroactively to 1/1/2014, but this may not be official until late this month, possibly even January.
Permalink Submitted by Don Warnke on Wed, 2014-12-03 23:23
if a person has to make the RMD by 12-31-2014, how will that work if they don’t pass it until 2015 since (as i understand) the money has to go from the custodian directly to the charitable organization?
Permalink Submitted by Thom K. Hall, CFP CEPA on Thu, 2014-12-04 21:25
I have a client turning 70 1/2 next year – do they have to wait until they actually turn 701/2 to make the contribution or can it be done at any time in teh year they turn like the normal RMD’s?
Permalink Submitted by Alan - IRA critic on Thu, 2014-12-04 23:38
The QCD cannot be done before the IRA owner reaches 70.5 to the day. The 2012 extension allowed IRA distributions not taken before 12/1 to be donated to the charity prior to 1/31/2013 by the IRA owner writing his own check. That allowed the donation to be treated as a 2012 QCD on the 2012 return. If the 2014 QCD is not extended before late December, we could well see this option repeated. Here is a complete explanation: https://www.kitces.com/blog/special-2012-lookback-rules-to-make-a-qualified-charitable-distribution-qcd-from-an-ira-in-2013/