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QCD Issues

Anon456 | | 136 posts since 2011

I'm still a few years away from RMD.

I'm luck to have some assets, but tax planning is a bitch.

Between investments, SS, and RMD, I will be hitting the added taxes of IRMAA.

One thing I plan on doing is a QCD each year. Amount to be determined, but I am thinking of doing 50% IRA distribution, and 50% QCD, and staying under the income limits for IRMAA. I may also move more taxable interest into STOCKS for potential long term gains and lower annual taxes, but I am somewhat shy of doing too much in the market.

OK - point of this post is asking for QCD ideas, Do's, and Don'ts. Any other tax planning advice would also be appreciated. YES, I am already doing ROTH conversions as much as I can each year.

FYI - part of the reason for the QCD is that it satisfies IRS RMD requirements, and also I am doing my gift giving while alive rather than waiting and doing it in my WILL.

S0 again, any QCD planning, or other tax planning advice, is appreciated.

ChasR | | 234 posts since 2013
My own take on QCDs is set forth in a post I did last year. /blog/personal-cd-investing-qcds.html

I've made a full QCD for 2017, equal to my RMD, but I'm holding off on future charitable commitments pending "tax reform" and a settling down of our political environment.
hank | | 44 posts since 2016
what is qcd and what is it good for?
Beao40 | | 9 posts since 2015
"Qualified Charitable Deductions". DA has some good info about it if you can link to the above.
Ally6770 | | 2,345 posts since 2010
I think it is 2020 that the $85,000 for high income SS recipients will be raised. Initially it was 2018 but after the crash of 2008 it was extended a couple of years. It has something to do with a certain % of seniors have to have enough income to be a high income medicare recipient. Of course this also may change.
Ally6770 | | 2,345 posts since 2010
Found a link and t is 2020 when the $85,000 is scheduled to be indexed to inflation.

By 2036, the number of people who pay higher Medicare premiums based on their income will rise to more than 6.26 million, or 7.8 percent of Medicare beneficiaries, according to projections by the Kaiser Family Foundation. That's because the triggers for the income-related charges aren't indexed to inflation until 2020.
hank | | 44 posts since 2016
If I remember correctly, there is a 2 year look back, so the medicare premiums you pay in eg 2020 is based on the income you get in 2018. Is that correct?