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That's a great list of most of the important numbers.
One class of figures it left out is charitable contributions. For 2020 only, if you make contributions in cash to a public charity excluding DAFs, you can contribute up to 100% AGI. This drops back down to 60% in 2021. The limit of appreciated property (including fund shares) to charities is 30% of AGI. Then there are all sorts of combo limits. When giving to public charities, any unused deduction can be carried forward for five years. https://www.forbes.com/sites/berniekent/2020/04/03/giving-more-than-60-of-income-to-charity-cares-act-says-deduct-it/?sh=7382a816b34f
As I recently turned 70.5, my thoughts have been on doing some QCD's from my IRA. The first check from Vanguard was received and I forwarded the check this morning. This was a test for what I want to do starting next year. While reading this thread, the thought came to me that MFO also qualifies for this QCD treatment too. Am I right? If so, I would be a pleasure to add MFO to my list for next year.
Just a note: The IRS indicates that it's acceptable procedure for the IRA custodian to make a check payable to the charitable organization and let the IRA owner deliver the check to the charity.
Yes, Derf. That is the way it played out in my case. So far all has gone smooth. Thanks for your comment and confirmation. The only thing I'll watch out for is how this is reported to the IRS. It should count for my RMD (when that time comes), but won't count as income to me. But I'm sure Vanguard has done this before. Again, Thanks.
@DaveSch: It looks to me MFO is listed as non-profit as per letter David received a few years back from IRS. Look under Support top of page. Later , Derf
MFO is a 501(c)(3) entity, so donations to MFO are deductible. Further, it is classified as a public charity. This can affect the amount of contributions that a taxpayer may deduct or carry over into future years. Being a public charity is also important because one can make QCDs only to public charities. https://www.fidelity.com/building-savings/learn-about-iras/required-minimum-distributions/qcds
Thanks guys. I got the address ok and added it to my list. I'll be starting this next year. Vanguard did a good job with my first QCD, so I don't expect any unwanted excitement going forward.
Comments
One class of figures it left out is charitable contributions. For 2020 only, if you make contributions in cash to a public charity excluding DAFs, you can contribute up to 100% AGI. This drops back down to 60% in 2021. The limit of appreciated property (including fund shares) to charities is 30% of AGI. Then there are all sorts of combo limits. When giving to public charities, any unused deduction can be carried forward for five years.
https://www.forbes.com/sites/berniekent/2020/04/03/giving-more-than-60-of-income-to-charity-cares-act-says-deduct-it/?sh=7382a816b34f
There's also the $300 above the line deduction for cash contributions to charities (excluding DAFs).
https://www.irs.gov/newsroom/special-300-tax-deduction-helps-most-people-give-to-charity-this-year-even-if-they-dont-itemize
This appears to be available in future years as well: "Under new Sec. 62(a)(22), for tax years beginning in 2020, eligible individuals may deduct up to $300 in qualified charitable contributions made to qualified charitable organizations."
https://www.journalofaccountancy.com/issues/2020/sep/cares-act-charitable-deduction-for-nonitemizers.html
Finally, let's not forget one of the most important (and underfunded) numbers:
(800) TAX-1040
While reading this thread, the thought came to me that MFO also qualifies for this QCD treatment too. Am I right? If so, I would be a pleasure to add MFO to my list for next year.
Dave
The IRS indicates that it's acceptable procedure for the IRA custodian to make a check payable to the charitable organization and let the IRA owner deliver the check to the charity.
Stay safe, Derf
The only thing I'll watch out for is how this is reported to the IRS. It should count for my RMD (when that time comes), but won't count as income to me. But I'm sure Vanguard has done this before.
Later , Derf
https://stateimpact.npr.org/florida/2013/04/05/explaining-the-differences-between-501c3-and-501c4-non-profits/
MFO is a 501(c)(3) entity, so donations to MFO are deductible. Further, it is classified as a public charity. This can affect the amount of contributions that a taxpayer may deduct or carry over into future years. Being a public charity is also important because one can make QCDs only to public charities.
https://www.fidelity.com/building-savings/learn-about-iras/required-minimum-distributions/qcds
https://www.mutualfundobserver.com/wp-content/uploads/2015/08/Mutual-Fund-Observer-IRS-determination-letter.pdf
I'll be starting this next year. Vanguard did a good job with my first QCD, so I don't expect any unwanted excitement going forward.