SecondCor521
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Hi all,
Recently someone suggested a QCD (Qualified Charitable Distribution) to a DAF (Donor Advised Fund) as a part of a financial plan.
Is this legal and acceptable from a tax point of view? Assume of course that the individual is over 72, the total QCD is less than $100K per year, that the DAF is a legitimate/qualified DAF, and that the transfer is made directly from the traditional IRA to the DAF.
If one substitutes "a 501(c)(3) charity" for "DAF" in the above, I understand the answer to be yes.
I have read some articles on the web indicating that DAFs are somehow excluded from qualifying as QCD recipients. The logic of this point of view escapes me, but I know taxes and logic don't always go hand in hand.
I have searched the IRS web site but not found a clear answer to the question.
(I could ask my CPA, but it was my CPA who made the suggestion in the first place. His remark was sort of offhand as something to look into, not something that he knew was acceptable.)
Recently someone suggested a QCD (Qualified Charitable Distribution) to a DAF (Donor Advised Fund) as a part of a financial plan.
Is this legal and acceptable from a tax point of view? Assume of course that the individual is over 72, the total QCD is less than $100K per year, that the DAF is a legitimate/qualified DAF, and that the transfer is made directly from the traditional IRA to the DAF.
If one substitutes "a 501(c)(3) charity" for "DAF" in the above, I understand the answer to be yes.
I have read some articles on the web indicating that DAFs are somehow excluded from qualifying as QCD recipients. The logic of this point of view escapes me, but I know taxes and logic don't always go hand in hand.
I have searched the IRS web site but not found a clear answer to the question.
(I could ask my CPA, but it was my CPA who made the suggestion in the first place. His remark was sort of offhand as something to look into, not something that he knew was acceptable.)