Qualified Charitable Distribution (QCD)

[Kathleen Reynolds]

#3698

Please see below image for details on section inputs.

• Start Year: Enter the year to start the QCDs. Regulations allow for QCD payments at age 70.5. This differs from the SECURE Act required beginning age of 72. If you enter a year before the person turns 70.5, the QCD is ignored for that year, and will only be allowed when the person is 70.5 or older.
• End Year: Enter the year to End the QCDs. If the person has died, and you enter a year beyond the death, those extra years will be ignored.
• Amount: The maximum amount of QCD allowed is $100,000.

Assumptions

• QCDs reduce the taxable income for the year, as opposed to a charitable bequest, which would be treated as a deduction.
• Years where an RMD is required, the QCD will occur and if the QCD is sufficient to cover the RMD, no additional distributions are taken. If the QCD does not satisfy the RMD, then the difference between the RMD and the QCD will result in a required distribution.
• The QCDs will not trigger a tax event.

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