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Returning Member
posted Jan 27, 2021 10:54:57 AM

I arranged to withdraw $100,000 from my (owned) IRA and made it a direct donation to a charitable organization. (I don't believe RMD is an issue). Correct?

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2 Replies
Level 15
Jan 27, 2021 11:05:03 AM

A Qualified Charitable Distribution is made directly from your financial institution to a recognized charity and you are not taxed on that distribution. You also can’t deduct that amount as a charitable itemized deduction on your return.  While the distribution counts to satisfy your RMD, there was no RMD in 2020. 

Level 15
Jan 27, 2021 2:18:00 PM

But keep in mind that some states do not recognize QCD's, so you may owe state tax on the $100,000.