On 5/11/2021 7:18 PM, DerbyDad03 wrote:
....

If you donate to charities, you may be able to do the donations directly
from your IRA and not pay any taxes on the RMD. They are called Qualified
Charitable Donations. You just can't take possession of the funds. You
have to have them sent directly to the charity(s).
....

If one does have to take the RMD, the QCD is a no-brainer for _any_
charitable deductions, no matter the size.

If you're going to donate anyway, it's throwing money down the tax hole,
otherwise.

In particular, a QCD is even better than a charitable contribution--the
latter is a tax deduction but from income; the QCD portion of an RMD is
not even counted as income; it's just reported as nontaxable.

It's especially easy if your IRA is set up with check-writing
privileges-- you can write the check yourself rather than have the
holder of the IRA do it for you.

The only limitation on a QCD to qualified charity is $100K/year.

With the higher personal exemption, many who used to be able to itemize
and no longer can do so; the QCD is a savior in that regards for those
in the RMD boat.

The CARES Act did add a provision that each can deduct up to $300 in
charitable contributions ($600 joint return) even if don't itemize
deductions. This was extended into 2021 by the last stimulus bill; it's
not permanent law so likely will sunset with the demands for higher
taxes all the proposals are going to generate.

The 100% AGI deduction is still in play if you're between 59-1/2 and
70-1/2 for withdrawals from a conventional IRA but not RMD.

As always, "consult your own tax professional" but having been
President of the local community college foundation for last 10 years or
so, I've become pretty familiar with the rules for nonprofits.

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