Certain rules apply for a QCD:
• Only distributions from traditional IRAs are eligible
• At the time of distribution, the IRA owner must actually be age 70½ or older
• An annual maximum dollar amount of $100,000 per taxpayer
• QCDs can be greater than the RMD amount
• Distributions must go to public charity
• Distribution checks made payable to charity
Additional Strategies:
• If your client needs the RMD for income, they could set up a future stream of payments using their RMDs. Or they could fund a qualified longevity annuity contract (QLAC), which allows a portion of the IRA to be invested and deferred from current RMD calculations to provide some longevity protection with future guaranteed income starting as late as age 85.
• Grandparent clients might want to consider starting an annual gifting program prior to RMDs or when RMDs are due, which would provide current gifts or, through a trust or non-qualified annuity, a legacy for children and grandchildren.