Maybe only for those that actually pay income tax. I think the lower 50% income wise population have average effective tax rate even lower. There is an ever increasing number of people that really have a negative effective tax rate. They are receiving so many transfers and refundable tax credits that they don't even pay income taxes.
As much as I can get all excited for these deals as the math says its almost a no brainer, my sane mind stops to reconsider. Do I really want all my personal data at yet another organization that may get hacked and/or an organization that is going bombard me with more marketing from their "affiliates"?
The simple solution of the Y is actually more complex. My understanding is the brokers are (and will be uncomfortable) using the Y. Unfortunately, a broker doesn't know how many other IRAs you may have that distributed QCDs. Therefore, you could make multiple QCDs from different custodians that all get a Y code, yet the sum could exceed the annual QCD limit. In that case, somewhere the Y on your 1099R is technically incorrect, yet the broker would have no way to know.
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Maybe only for those that actually pay income tax. I think the lower 50% income wise population have average effective tax rate even lower. There is an ever increasing number of people that really have a negative effective tax rate. They are receiving so many transfers and refundable tax credits that they don't even pay income taxes.
Post: Your effective tax rate
Link to comment from February 4, 2026
As much as I can get all excited for these deals as the math says its almost a no brainer, my sane mind stops to reconsider. Do I really want all my personal data at yet another organization that may get hacked and/or an organization that is going bombard me with more marketing from their "affiliates"?
Post: Marcus Savings Bonus Offer
Link to comment from February 1, 2026
The simple solution of the Y is actually more complex. My understanding is the brokers are (and will be uncomfortable) using the Y. Unfortunately, a broker doesn't know how many other IRAs you may have that distributed QCDs. Therefore, you could make multiple QCDs from different custodians that all get a Y code, yet the sum could exceed the annual QCD limit. In that case, somewhere the Y on your 1099R is technically incorrect, yet the broker would have no way to know.
Post: Checks and Balances
Link to comment from January 28, 2026