I have a client who is turning 70 1/2 this year and wants to contribute her IRA holdings (about $40,000) to charity. She does not need the money and would like to avoid paying the tax on the future distribtuions from the IRA. She will still want to make cash donations in addition to the IRA money. My understanding is that the IRA donation does not effect her donation limitation for other cash contributions. Any complications or things I need to be aware of?
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If she does it directly via QCD it should not come into play on her tax return. The withdrawal does not affect her AGI, social security, itemized deduction limitations, etc. etc. It is a direct transfer. Therefore, it should not affect the 50% taxable income limitation on her contributions either. The custodian may send a 1099R but if so, it should be input on the 1040 as a QCD. -
Thanks Burke for the quick reply!Comment
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