Qualified Charitable Distributions

Submitted by Mobey on Thu, 2018-01-25 20:50

Hello,

I have a gentleman who tells me his advisor has been letting him take his RMD as a QCD but instead of it going to a charity, it goes into a charitable trust of some sort.

My understanding is this has to be directly to a charity.

Is there a way to properly use this to fund a donor advised fund or a charitable trust?

Thanks,

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Permalink Submitted by Alan - IRA critic on Fri, 2018-01-26 00:06

Your understanding is correct. Charitable lead trusts, charitable remainder trusts, and donor advised funds are not eligible to receive a QCD donation. The IRA distribution will count toward the RMD, but will also be included in AGI, unlike a QCD. However, the contribution should eligible for the itemized deduction to the extent it otherwise would have been.