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QCD(s) for 2019

  • 1.  QCD(s) for 2019

    Posted 18 days ago

    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

     

    Canyon, Texas



  • 2.  RE: QCD(s) for 2019

    Posted 17 days ago
    The short answer is No.  Each IRA is owned by the individual and considered separate even in Texas.  While Texas is community property state and a divorce decree may see transfers of IRAs to the other spouse, you are not able to use a charitable distribution from one's IRA more than $100k for a year (at age 70 1/2 or more).  It is a specific restriction.  Each taxpayer must meet or exceed their own specific RMD or face the penalty.  And then you have the 4100k limit on each's IRA which you mentioned he had already met.  So you are blocked there.

    ¶203. Qualified charitable distributions and year-end IRA-RMD strategy (10/2018)

    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 )

    Document Title:203 Qualified charitable distributions and year-end IRA-RMD strategy (10/2018)
    Checkpoint Source:Tax Planning and Practice Guides (Special Studies): Prior Years


    Steve Miller

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    Steven Miller CPA
    STEVEN E. MILLER, CPA, PC
    Dallas TX
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  • 3.  RE: QCD(s) for 2019

    Posted 17 days ago

    Thank you Steven Miller!






  • 4.  RE: QCD(s) for 2019

    Posted 16 days ago

    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 distribution

    Pamela 



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    Pamela Diamond
    CPA
    CREATIVE WEALTH BUILDERS, LLC
    West Hempstead NY
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