RMD charitable deduction for future charity payout
Can you take an RMD and setup a charitable entity and entity pays out to various charities at a later date? A client wants to take his RMD, needs a deduction due to real estate sale, would like to deposit into charitable account that he can control and payout to various charities at later date? Is this possible? And, what would that entity be, please?
Barb L
Permalink Submitted by Alan - IRA critic on Wed, 2016-09-28 21:11
That would probably be a donor advised fund. Donor advised funds and private foundation contributions do not qualify as a QCD, but would qualify for a charitable deduction if and when itemizing. The latter situation is generally not as beneficial as a QCD because the full RMD is still included in AGI.