Deepp
Employee Tax Expert

Retirement tax questions

Hello,

 

Welcome to the event:

 

Your question: "Can I use RMDs from my IRA to fund a donor advice fund? Is this a good strategy to reduce income?"

 

You can use your Required Minimum Distribution (RMD) from an IRA to fund a Donor Advised Fund indirectly (DAF). Direct Qualified Charitable Donations (QCD) to DAF are not allowed. Use QCD to reduce taxable income, and separately make donations to DAF from non-IRA fund. Alternatively, you may consider donating appreciated assets to the DAF instead. 

 

https://www.irs.gov/publications/p590b

 

Hope this helps. 

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