QCD's to fund a CGA in 2024 - Ed Slott and Company, LLC

Submitted by John Fedchak on Wed, 2024-01-24 23:53

In 2024 can I fund a Charitable Gift Annuity as a QCD from a Traditional IRA to satisfy my RMD for 2024?
I did so in 2023, so can I do likewise in 2024? Also, is the gift amount restricted to the RMD amount?
What is the limit amount to benefit from a QCD to a Charitable Gift Annuity?
Can I exceed the RMD amount and still benefit as a QCD to a CGA?

My understanding had been that funding a CGA as a QCD from an IRA could only be done until the end of 2023.

Thanks for any input.

John F

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Permalink Submitted by Alan - IRA critic on Thu, 2024-01-25 00:52

The CGA as QCD is a one time opportunity, so if you executed it in 2023, you can’t do any more even if your CGA was far less than the 50,000 limit last year.
CGAs and other QCDs are not directly linked to the RMD. They can be done at 70.5 prior to RMDs or can be done in amounts in excess of the year’s RMD, but they are most tax efficient when done to reduce the taxable RMD in a given year.
The new inflation adjusted limits for QCDs in 2024 are 105k, with the CGA portion limited to 53k, but of course you are now limited to QCDs only as you have used your one time CGA distribution.
The CGA can be done in any year starting with 2023, but only one time.