Legacy IRA - RMD to CGA

Forum|Forum|1 year ago
December 12, 2024
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I purchased a CGA and used my RMD (as a QCD) to fund the CGA.

How is this reported on my 1040? And which version of Turbotax do I need to do so?

Many thanks! Lee

Best answer by dmertz

Thank you, dmertz.

I haven't used Turbotax in the past. I assume I would need the Deluxe version, either online or desktop?

All versions handle Forms 1099-R.

VolvoGirl

Employee

What is CGA? I searched and didn’t find a charity. The charity must be a 501(c)(3) organization.

dlt73Author

Charitable Gift Annuity. If one is 73 they can use their RMD to fund a CGA thus reducing the RMD as taxable to zero for that year.

More info:

https://www.acga-web.org/about-gift-annuities

dmertz

Employee

The Form 1099-R from the IRA will be entered just like any Form 1099-R that reports a QCD. After entering the Form 1099-R details, TurboTax will ask if the distribution was paid to a charity.

Distributions paid to you from the CGA will be taxable income to you, reported on a Form 1099-R issued by the annuity. You'll enter this just like any Form 1099-R from an annuity (except that some portion of the distribution might be included in box 3 to be taxed as a capital gain, unique to CGAs).