IRA to Endowment
I have a client who has called me and asked me about something that they have heard about where they can make a one time tax free withdrawal from their IRA into an endowment for a non profit. The only thing that I can think of is a QCD but that wouldn’t be until he were 70 years old and he is only 61.
Any thoughts?
Permalink Submitted by Alan - IRA critic on Fri, 2021-07-23 17:56
Client could take a taxable distribution from the IRA, and offset those taxed by itemizing the donation, but only to the extent that the client already has enough itemized deductions to equal their standard deduction, and therefore the donation would generate additional deductions above the standard deduction. This would not be as beneficial as a QCD (after 70.5) since the IRA distribution would still be included in AGI, whereas a QCD is not.