QCDs under RMD age: Am I Right on This?

[Deleted]

I turn 70.5 next year so I'll be eligible to make QCDs from my IRA.  I was thinking of making some of my charitable deductions in 2023 as a QCD but it looks like there's no real advantage.  Let's use $12,000 as the donation amount.  If it comes out of my IRA that means my itemized deductions are $12,000 less so my taxes would actually be higher than if I took the donation out of after-tax investments.  Impact on AGI is nil since the withdrawal is going to a charity.

So... it looks like the only benefit I get is reducing future RMDs.  True?  The $12,000 is a very small % of my IRA balance so the impact over a single year would be minimal.

I'm planning ahead i=since our church pledge campaign begins in a month or so. Typically I contribute appreciated stock form the after-tax accounts at the beginning of the year.  I can't do a QCSD till 8/1 so the timing would be different and I'd want to let them know.   Looks to me like I should wait to make a QCD till I have to start RMDs.  Please confirm.  

[saveinla]

As per Fidelity, it looks like you don't have to itemize - unless your itemized deductions are higher than the standard deduction.

Wont it also reduce your taxable income by 12K?

[Deleted]

Sept 21, 2022 22:53:11 GMT -5 saveinla said:

As per Fidelity, it looks like you don't have to itemize - unless your itemized deductions are higher than the standard deduction.

Wont it also reduce your taxable income by 12K?

Yes, I always exceed the standard deduction.  I'm single and  have large deductions for charitable contributions, health insurance premiums, state and local taxes, etc.

My impression is that the $12,000 QCD would have zero effect on my taxable income.  It's a withdrawal from an IRA, which would ordinarily be taxed, but it's not since it's a QCD.   And donating through that route rather than from my after-tax accounts would mean my taxable income would be $12K more because of reduced itemized deductions.

Ordinarily I'd run through this scenario in TurboTax but I'd have to copy over my original file and fake my birth date so it looks like I'm old enough to do QCDs.  I may resort to that.