Reply To: QCD from inherited IRA

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#71359
Bruce1950
Participant

Thanks Alan.
A couple of follow-up questions

1. If an IRA owner has $100,000 TIRA of which $20,000 is basis and the RMD is, say $5,000, of which $1,000 is basis, how will this be treated if the IRA owner makes a QCD of the entire $5,000? I would imagine $4,000 will represent the QCD and $1,000 will simply be a charitable contribution that can be deducted if the IRA owner itemizes deductions.

2. If I worked in 2020 and so made a deductible TIRA contribution of $1,000 and this year I’m 72 and make a $1,400 QCD, does the rule require me to reduce the QCD to $400, with the other $1,000 treated as ordinary income and so eligible to be taken as a charitable contribution on schedule A?

Thanks again

BruceM