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. What is Jaden’s AGI after considering the RMD under each of the following alternative scenarios?
a) Jaden receives the RMD and donates the $5,000 distribution proceeds to a qualifying charity.
b) Jaden directs the IRA trustee to transfer the $5,000 distribution directly to a qualifying charity as a qualified charitable donation (QCD).
c) True or False. Based on the information provided, Jaden’s taxable income is the same whether he makes a QCD or not. Explain.