Required Minimum Distribution (RMD) paid directly to a Charity

[frankroemisch]

Required Minimum Distribution (RMD) paid directly to a Charity > where to show charitable contribution in 2023 Version of TurboTax?

[SteamTrain]

You enter the $$ amount in one of the foldup questions after you enter the actual entire 1099-R form itself.

The follow-up Q&A , after the main 1099-R form page, will ask

1)  If it was an RMD...YES.

2)... then : All of it was an RMD  (as long as all of the $$ removed in 2023 was for the RMD)

3) then:  you get to select whether ALL of it, or Part of it was transferred to a charity.

4) then ...if you said "Part" was transferred, you enter how much.

.

[SteamTrain]

Note also that you do not put it in as a charity contribution on the Deductions&Credits page.

The RMD/QCD entered as part of your 1099-R Q&A just removes that portion of income from your Gross income right from the start....even if you end up using the Std Deduction for the regular deductions area.

[frankroemisch]

3) then:  you get to select whether ALL of it, or Part of it was transferred to a charity > doesn't pop up as an option

[frankroemisch]

THANK YOU for your help!!

[SteamTrain]

@frankroemisch 

So figured it out?

Occasionally, the progress of the Q&A is somewhat different in the "Online" software vs the "Desktop" software.

[frankroemisch]

Nope - not yet (LOL)

[SteamTrain]

Then you perhaps could post the exact responses you are making to the follow-up questions...In Order.

Perhaps we can figure out what's happening 

(You were age 70.5 or older during 2023? correct?  i.e. I'm not cognizant about whether RMDs from "inherited" retirement accounts can be used for QCDs or not, if you were younger.)

[SteamTrain]

Oh yeah, and the QCD can only be done if the Retirment account was an actual IRA......not a 401k, 403b, etc.

AND if it was made from an IRA, the IRA/SEP/SIMPLE box needs to be checked on the main 1099-R form in the software.

[frankroemisch]

I was not aware of the age restriction of 70.5 prior to you mentioning it and my looking into it further - I am well under that age.

THANK YOU for helping me get this question resolved - hope you have a great day!!

[SteamTrain]

Was it from an inherited IRA retirement account?...or originally your own IRA?.

[frankroemisch]

Inherited from my Father In Law who passed in 2022 - we know we need to distribute the funds within 10 years.

[dmertz]

You will only be offered the option to indicate a QCD if your age was at least 70½ during the year.  If the RMD is paid from an inherited IRA, the beneficiary of the IRA is required to be at least age 70½ at the time of the distribution.  Also, QCDs can only be made from IRAs, not from qualified retirement plans like a 401(k).

[SteamTrain]

@dmertz 

Thanks, I was just tagging you to ask about that..

I wasn't sure an inherited account, which might have some sort of RMD, even if an IRA. whether they could designate distribution as a QCD in spite of being younger than 70.5

_____

Thus, whatever was sent to the charity is not a QCD....but can be entered as a normal charity contribution separately, on the Deductions&Credits page of the software.

[frankroemisch]

THANKS to both of you > have a great day!!