Post by yogibearbull on Aug 16, 2023 12:25:47 GMT
A M* poster (LINK) noted this new RMD-QCD-annuity, ardweb.uchicago.edu/downloads/QCD_to_Fund_a_CGA_One_Pager_2023.pdf
This is modeled after the charitable remainder trust (CRUT/CRAT) with taxable funds. In these, basically (i) the donor gets immediate partial deduction for the imputed value of the "donation" (accounting for annuity "benefit"), and (ii) the payments to beneficiaries are taxable.
In the new RMD-QCD-annuity setup, only (ii) applies as (i) is not completely applicable. But I am surprised that the full amount is counted. So, if one has $50K in this RMD-QCD-annuity, and $50K in outright QCD, one gets some benefits back from the former. This does seem strange but it is more restrictive than CRUT/CRAT from taxable funds (e.g. beneficiaries can be the donor or spouse only, and other restrictions).
Edit/Add, 8/17/23. QCD can only be from T-IRAs, not from 401k/403b (but those can be rolled over into T-IRAs). Note the RMD age of 72+ and QCD age of 70+.
This is modeled after the charitable remainder trust (CRUT/CRAT) with taxable funds. In these, basically (i) the donor gets immediate partial deduction for the imputed value of the "donation" (accounting for annuity "benefit"), and (ii) the payments to beneficiaries are taxable.
In the new RMD-QCD-annuity setup, only (ii) applies as (i) is not completely applicable. But I am surprised that the full amount is counted. So, if one has $50K in this RMD-QCD-annuity, and $50K in outright QCD, one gets some benefits back from the former. This does seem strange but it is more restrictive than CRUT/CRAT from taxable funds (e.g. beneficiaries can be the donor or spouse only, and other restrictions).
Edit/Add, 8/17/23. QCD can only be from T-IRAs, not from 401k/403b (but those can be rolled over into T-IRAs). Note the RMD age of 72+ and QCD age of 70+.