distributions to charity from IRA
have client who is 71 this year but has not started his RMD as it is changed to age 73.
I know the RMD is at 73 now but the QCD is still at 70-1/2
1. can he take an IRA distribution this year and send it directly to the church and not pay taxes on the distribution amount?
or…
2. He has to wait until 73 for the IRA distribution to be considered an RMD to send directly to the church?
Thank you and have a blessed week.
Douglas
Permalink Submitted by tomd37 on Mon, 2023-05-08 20:26
As long as he has reached the age of 70.5 as of the date of distribution, his distribution is not a RMD, but rather a normal distribution in the form of a QCD. He will receive a 1099-R in the amount of the distribution and it will be his responsibility to report it properly as a distribution, but as a non-taxable distribution on line 4 of form 1040.