RMD to charity

Submitted by MIKE KRUCHTEN on Wed, 2018-05-02 01:47

Looking for some clarification on this topic.
Client’s RMD in 2018 is $25,000. Can client gift more to charity direct from IRA or is max the lesser of RMD amount or $100,000? I think $100,000 can be gifted annually at RMD age but not before.

Also, if client wants to gift to a local public elementary school would this be considered a charity. The school does not have a special fund for bequests they would place in the general fund.



Submitted by Alan - IRA critic on Wed, 2018-05-02 03:42

  • There is no minimum for a QCD. QCDs can be either more or less than the RMD but NOT over 100k. Client must also have reached 70.5 before doing a QCD. Since the first distribution in a year is deemed to apply to the RMD, the QCDs should not be delayed until there is not enough of the RMD remaining to offset with the QCD.
  • A public school would be qualified for a QCD donation.

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