Questions about contributing to a Qualifed Charitable Annunity to satistfy RMD

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TomG
TomG Member Posts: 3 Newcomer

My wife and I are both in our mid-70’s and blessed to have substantial Traditional IRA’s, with the resultant Required Minimum Distributions (RMD).

My questions are about the new provision that allows us to contribute to Qualified Charitable Annuities (QCA) as part of our RMD. I’ve read they are “one-time” with a max of $50k.

Does one time mean one tax year, or only one QCA can be established? Can we set up more than one QCA as long it is in the same tax year?

We file jointly, can I make my contribution in one tax year, and my wife in another tax year?

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  • KeriC
    KeriC FreeTaxUSA Agent Posts: 93
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    There isn't a lot of information from the IRS regarding CGAs since this is a fairly new tax law.

    The most comprehensive source I have located can be found at:
    https://www.acga-web.org/new-charitable-planning-opportunities-with-retirement-plans

    From my understanding:
    - You could contribute up to $50,000 from your IRA.
    - Your spouse could contribute up to $50,000 from their IRA.
    - More than one contribution can be made, but all contributions must be made in the same calendar year.
    - Contributions would need to be made to the same CGA for both you and your spouse, so only one CGA between the two of you.
    - I don't see anything that clearly specifies if you and your spouse both have to contribute to the CGA in the same year or not, but the conservative approach would be to both contribute in the same calendar year.

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