Qualified Charitable Deductions

QCDs are a direct donation to an established charity from an IRA without impacting Adjusted Gross Income. It does count toward Required Minimum Distribution.
The current arrangement is that QCDs disappear December 31, 2013. I guess it is possible that they could be renewed for 2014. 2012 QCDs weren't approved until January 2013 so planning is uncertain.
One option I am considering is making my 2014 donations in December, 2013.
What do you think?
Frank
Reply to
frank
The tax commentary I've been reading says the allowance for QCDs is likely to be renewed, and perhaps made permanent if some kind of major tax overhaul is passed. That's just a guess based on what is happening in committees currently and things can change. More significant, I think, is that there isn't quite the same urgency to tax legislation as there was in late 2012, so it's possible none gets passed at all for awhile. You may be get to mid-December without knowing the answer for 2014.
So "bird in hand" - moving your 2014 donations into 2013 assures that you both make the donation and get the QCD benefit. The charity may be happy to get the money earlier, anyway.
Make sure you do your QCD early enough that the charity receives and deposits the check from the IRA custodian. One time I recall a charity losing a check internally and it was eventually credited back to the IRA. It didn't have an effect in that case, but if it had been a QCD close to year-end that was necessary for satisfying the RMD, it could have triggered a big mess. Maybe give it a couple more weeks and if no relevant tax bill looks imminent, make the decision and get the paperwork going.
-Tad
Reply to
Tad Borek

Site Timeline Threads

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.