Jaden (single) has a traditional IRA to which he has made only deductible contributions. At the end of 2022, Jaden is 74 years old. Jaden's required minimum distribution (RMD) from his IRA for 2022 is $5,000. Before considering the RMD, Jaden's AGI is $100,000. Jaden does not itemize deductions. Required: What is Jaden's AGI if Jaden receives the RMD and donates the $5,000 distribution proceeds to a qualifying charity? What is Jaden's AGI if Jaden directs the IRA trustee to transfer the $5,000 distribution directly to a qualifying charity as a qualified charitable donation (QCD)?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 41P
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Jaden (single) has a traditional IRA to which he has made only deductible contributions. At the end of 2022, Jaden is 74 years old. Jaden's required minimum distribution (RMD) from his IRA for 2022 is $5,000. Before considering the RMD, Jaden's AGI is $100,000. Jaden does not itemize deductions.

Required:

  1. What is Jaden's AGI if Jaden receives the RMD and donates the $5,000 distribution proceeds to a qualifying charity?
  2. What is Jaden's AGI if Jaden directs the IRA trustee to transfer the $5,000 distribution directly to a qualifying charity as a qualified charitable donation (QCD)?
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