Enjoying making charitable gifts from IRA

[harllee]

DH turned 70.5 last month. We have fairly large traditional IRAs and many charitable interests. We had not been able to do as many charitable gifts as we would have liked because most of our assets are tied up in IRAs. Under the IRA rules, once DH turned 70.5 we have been able to do Qualified Charitable Distributions from DH's IRA (up to an annual max of $100,000.) We have been meeting with some charities and discussing how the gifts can be used. We are really enjoying this. DH's IRA is at Vanguard and we have found it very easy to set up the QCDs. There is an online form for this, the check made payable to the charity is sent to us and we then mail the check on to the charity with a letter. We are so grateful that our financial situation allows us to do this for charities were are interested in.

[athena53]

It's a wonderful feeling, isn't it? I'm 68 so can't do QCDs from my IRAs yet but the longer I'm retired, the more relaxed I am about charitable donations, seeing that I can spend on what I need and what I want, keep enough aside for my future costs and (I hope) to leave a legacy, and still donate generously. Small mortgage, no kids in college, no one else dependent on me.

It's a real blessing to see a charity doing something very important to you and be able to help.

[skyking1]

That is a happy tax dodge if I ever heard of one. Congrats on making that happen and being part of the process.

[Dash man]

I’m only 65, but have been using a Schwab Donor Advised Fund by transferring some highly appreciated stocks into the account. It’s made charitable giving so easy, and I also enjoy giving more as I get older.

[skyking1]

I am doing Roth conversions for much of DW's traditional IRA funds, but this is sounding more and more like a great way to handle her RMD's in the future.
What Athena said above applies, right now we are on relative pins and needles about what we can and cannot afford, but by the time it becomes applicable ( ~14 years) I would guess it will make sense.

[Souschef]

I am doing the same thing. It saves me about 30% in taxes, and the charities are tremendously grateful,
I file the thank you letters along with a copy of each check in my tax file. That way everything is documented.

[OldShooter]

FWIW, Schwab sends us QCD check blanks. So we use them for even small donations like public radio. Couldn't be easier and as a result of using QCDs we are able to take the standard deduction for the first time I can remember. Our non-charitable deductions amount to maybe half the standard, so we make a "profit" to the extent of the taxes avoided on the difference..

For those who may not know, QCDs cannot be used to fund a DAF.

[Golden sunsets]

We've been doing this as well, for about 4 years. Over that period our brokerage firm has improved the process, and it has been simplified significantly.

[savory]

DW turned 70.5 this year. It is a great and easy way to give at FIDO as well.

[donheff]

Quote:

Originally Posted by athena53 It's a wonderful feeling, isn't it? I'm 68 so can't do QCDs from my IRAs yet

I'm not aware of anything that says QCDs must be from RMDs. Can't you begin QCDs any time after age 59? I am using them from RMDs but if I was younger I would still shift my charitable giving over to QCDs to get the deduction.

[harllee]

Quote:

Originally Posted by donheff I'm not aware of anything that says QCDs must be from RMDs. Can't you begin QCDs any time after age 59? I am using them from RMDs but if I was younger I would still shift my charitable giving over to QCDs to get the deduction.

QCDs do not have to be from your RMD but you have to be over age 70.5 to do QCDs.