Quote:
Originally Posted by LuvtheVillages
It does not matter whether you itemize or not. When you donate a Qualified Charitable Distribution, it counts toward your RMD, and does not count as income to you.
Be sure that the funds go directly from your retirement account to the charity. You must not receive the funds. Simply call your charity and let them know that the funds are on the way. If you donate regularly, (perhaps to your church or temple) you can satisfy your annual tithe this way.
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It does matter! Doing a Qualified Charitable Donation (QCD) lowers your taxable RMD.
This reduces your adjusted gross income. A lower AGI may reduce the % of Social Security taxed, may affect your medicare premium or if you can deduct medical expenses (if you itemize) will increase that deduction since medical expenses are reduced by 7.5% of AGI.
Second if you do not itemize your charitable contributions do not reduce your taxable income since they are lost.
In kind distributions from IRA are distributed at the then market value of the stock. The receiving account resets the tax basis to the value of the stocks when distributed.
Lastly - yes - you can take an RMD based upon the value of your accounts at the end of the previous year from one account.