Qualifications
In 1974, what legislation was created to ensure the IRS would get their "fair share" of any tax deferred dollars put aside for retirement savings.
The Individual Retirement Account, aka IRA
When I reach 70 1/2 where are the dollars located that will fund my QCD?
Your IRAs. 401bs and 401ks must be transferred to an IRA before distributions permitted.
I currently have $25,000 in my Donor Advised Fund. How much can I use for a QCD?
$0. A QCD cannot receive money from a DAF.
I have $500,000 in my IRA and I have contributed $20,000 to my QCD in 2025. What is the maximum amount I can use to set up my Legacy IRA in 2025.
$54,000? The maximum size for a Legacy IRA in 2025.
Under what circumstances can a charitable contribution reduce my taxable income?
Only if you itemize or if you make the charitable contribution as a QCD.
My RMD begins at age 73, at what age can I begin my QCD?
70 1/2
At age 73 I must start taking a Required Minimum Distribution (RMD). At what age must I begin my QCD.
None. A RMD is a legal requirement. A QCD is an option only that becomes available at 70 1/2
My QCD for 2025 is $24,000 and I itemize my deductions. What is the amount (or %) of my QCD that I can deduct.
$0?
You cannot deduct any amount used to fund a QCD.
I have $200,000 in my IRA and I want to open a Legacy IRA for $50,000. What is the maximum amount I can still contribute to my QCD.
What is $58,000?
$108,000 - $50,000 =$58,000.00
Can I use a QCD and a Legacy IRA in the same year?
Yes, but the total cannot exceed the annual limit ($108,000 in 2025).
In 2024 the QCD limit was $105,000, what amount is the limit for 2025?
$108,000.
The 1099r I received from my IRA custodian did not specify that any dollars were used to fund my QCD, so how does the IRS know I contributed to a QCD?
The tax filer must write "QCD" on the applicable tax form(s).
On December 25, 2024 I became eligible to use the QCD and I used $10,000 of my $105,000 available limit. How much can I roll over to 2025?
$0.
Each year stands on its own.
My wife and I each have $100,000 in our respective IRAs. I want to open a Legacy IRA for $50,000. What is the maximum amount that my wife will be able to use if she also wants a Legacy IRA.
$54,000?
IRAs are individual accounts and are not impacted by another person.
What option might I use if I have charitable intent but need guaranteed, fixed income as long as I (and/or spouse) are still living?
Legacy IRA provides fixed, current and lifetime income for you and/or your spouse.
Where on my personal check do I designate that this contribution is for my QCD?
You cannot use a personal check for a QCD. The gift must come directly from the custodian. However, the custodian may supply QCD checks for you to use.
Any amount withdrawn from my IRA and used to fund my QCD will have this impact on my Federal taxes.
It will always lower your taxable income and possibly move you to a lower tax bracket.
I will use $25,000 of my QCD limit in 2025 for a contribution to the University of Alabama Scholarship program. Can I receive basketball seats equal to the value of my contribution?
No. Any benefit received as a result of a donation that is used to fund a QCD violates the terms of a QCD.
If I set up a Legacy IRA in 2024 for $27,000 (max of $53,000), what size Legacy IRA can I set up in 2025?
$0.
The Legacy IRA can only be used in 1 calendar year. You can have multiple Legacy IRAs if the total amount does not exceed annual limit.
If I currently use the standard deduction when preparing my tax returns, how do I insure I will financially benefit from making a charitable donation.
Use the QCD or Legacy IRA options.
I have $100,000 in my 401k and my wife has $50,000 in her 403b. Using these accounts only, how much can each of us contribute to a QCD?
$0. QCDs can only be used with IRAs, however, you can transfer these Retirement accounts to an IRA.
If I am in a marginal tax bracket of 22% and make a QCD contribution of $10,000 what is the amount of Federal taxes I could save.
$2,200
22% 0f $10,000 is $2,200.
I want to withdraw the least amount of money possible from my retirement accounts. My RMD for 2025 is $30,000 and I withdrew the entire amount in January to complete my obligation.
How much can I still convert to a QCD before 12/31/25.
$0.
The 1st dollars withdrawn from an IRA apply against the RMD. They cannot be converted to a QCD at a later time. Additional dollars may be withdrawn but will be in excess of the RMD.
Who can receive the income distributed from my Legacy IRA.
Only the "owner and/or spouse"?
Please see your CPA, tax preparer, or other professional before making any final decisions as relates to QCDs, RMDs, or Legacy IRAs. What is this type of protection called?
A DISCLAIMER ( Methodist answer)
CYA ( Baptist or Catholic answer)