QCD

Client wants to donate RMD to charity. Is it allowable?



The QCD was retroactively extended only through 2014. It is not extended for 2015, but there are proposals to make it permanent and end these inefficient retroactive extensions. If the custodian allows it, a direct distribution to the charity can be requested, and it will count as a QCD IF the provision is extended. If no extension is passed, then it would be treated as a taxable distribution of the RMD, and a separate donation which could be itemized if the taxpayer can itemize. In other words, if the taxpayer is going to donate with or without the extension, may as well do it in a form that will qualify for the QCD if it is eventually extended for 2015.

Add new comment

Log in or register to post comments