Clarification: The original draft of this article omitted some important nuances about the use of qualified charitable distributions and the timing of Roth conversions.
How To Reduce The Pain Of RMDs
November 9, 2022
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The article has been updated and I thank the editors for their prompt update on QCDs.
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The statement in the 11th paragraph "In fact, they {QCDs} are tax deductible up to $100,000 a year" is totally misleading. Several parallel articles relay the following on QCDs. The QCD cannot also be used as a deductible charitable contribution if you itemize your deductions. That would be something of a double tax break for the same transaction (see: thebalancemoney.com). The IRS won’t let you double dip. Though your QCD amount is not taxed, you can’t also claim the distribution as a charitable tax deduction (see: newretirement.com). While the QCD amount is not taxed, you may not then claim the distribution as a charitable tax deduction (see: fidelity.com). Finally, IRS Pub 590-B (25 April 2022, in its QCD section on page 15) states: "Caution: You can't claim a charitable contribution deduction for any QCD not included in your income." So, the author of this article and/or the FA editorial staff need(s) to do additional research here and publish a "correct" article on the employment of this very important tax-saving strategy.