Is a DAF contribution taxable if I also contribute to an IRA in the same year?

The 1/10/22 article “QCD reminders and pitfalls” points out that the IRS considers making a QCD and an IRA contribution in the same year to be double dipping and so the QCD would be taxable, thus you recommend making the contribution to a Roth. Does this apply also for the same situation, just switch QCD to DAF?



Only a deducted IRA contribution reduces a QCD to the extent of non deductible contributions after 70.5, not a Roth or non deductible TIRA contribution. A Roth contribution is preferable to a non deductible TIRA contribution if MAGI permits and you prefer the QCD to be uncompromised. Of course, if the deduction meant that much and you could itemize, you could donate a taxable RMD or other distribution to a DAF, but you must be able to itemize deductions and have enough other deductions outside of the donation to allow the full DAF to be deducted. Most seniors no longer itemize given the higher standard deduction.

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