I have a HNW client who has made the maximum $100,000 contribution(s) from his IRA for 2017 & 2018. Does anyone know if it is possible to make excess $100,000 by using spouses name on QCD? Her IRA does NOT have the funds, but his does. Is it qualified/permissible to contribute from HIS IRA with HER name on the contribution, but fund the amount from HIS IRA?
P.S. – Texas is a community property state and for MOST everything, husband & wife are considered the same...just not sure about this situation.
Thanks for any help!
John B. Crozier, III
Certified Public Accountant
An annual exclusion from gross income (not to exceed $100,000) is available for otherwise taxable IRA distributions that are qualified charitable distributions. (Code Sec. 408(d)(8)) Such distributions aren't subject to the general percentage limitations that apply for making charitable contributions since they aren't included in gross income and can't be claimed as a deduction on the taxpayer's return. Since such a distribution isn't includible in gross income, it doesn't increase AGI for purposes of the phaseout of any deduction, exclusion, or tax credit that is limited or lost completely when AGI reaches certain specified levels, see ¶ 103 .
To constitute a qualified charitable distribution, the distribution must be made (1) after the IRA owner attained age 70-½ and (2) directly by the IRA trustee to a Code Sec. 170(b)(1)(A) charitable organization (other than a Code Sec. 509(a)(3) organization or a donor advised fund (as defined in Code Sec. 4966(d)(2))). Also, to be excludible from gross income, the distribution has to be otherwise entirely deductible as a charitable contribution deduction under Code Sec. 170 without regard to the regular charitable deduction percentage limits. ( FTC 2d/FIN ¶ H-12253.2 et seq.; United States Tax Reporter ¶ 4084.03 )
Thank you Steven Miller!
Every IRA account holder stands on their own . You cannot take an IRA distribution ( nor a QCD) distribution from a spouses IRA and classify it as coming from your IRA account .
Your client will have to wait until January 2020 to take another QCD distributionPamela