Charitable Gift from an IRA
My client who just turned 70 1/2 (To be specific, she is past the 70 years and six months point.) has a traditional IRA from which she wants to make a charitable donation of a portion of her RMD. My broker/dealer has a form to authorize a check going to a third party. That part is easy, but are there pitfalls I should be aware of.
Permalink Submitted by Alan - IRA critic on Fri, 2017-10-20 20:49
The check must be payable to an eligible charity (eg a donor advised fund is not eligible) but can be mailed to the client for forwarding to the charity. If the client has taken any IRA distribution this year prior to the QCD, that earlier distribution will be applied toward the RMD and while the QCD would not be taxable, it would not offset the taxable income from the earlier RMD distribution. Max amount for all QCDs in a year is 100k.