QCD double up
Client reached age 70 1/2 in 2016. Decided to delay $55,000 RMD into 2017. RMD for 2017 is $70,000. Can client do a QDC for the entire amount of $125,000 or is she limited to $100,000 annual QCD?
Thank you.
Client reached age 70 1/2 in 2016. Decided to delay $55,000 RMD into 2017. RMD for 2017 is $70,000. Can client do a QDC for the entire amount of $125,000 or is she limited to $100,000 annual QCD?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2017-01-10 17:49
She is limited to 100,000 in any calendar year. She could have done a QCD before year end and after reaching 70.5 ini 2016 to offset the 55,000 2016 RMD. Then she could have offset the entire 2017 RMD of 70,000 by a QCD done this year. But she cannot back date a QCD to 2016 or carry over any of the unused 100,000 from last year.
Permalink Submitted by David Mertz on Tue, 2017-01-10 17:52
She can still have $125,000 transferred to charity in 2017, satisfying her 2016 and 2017 RMDs, but only $100,000 of that will be reportable on her 2017 tax return as a QCD. The remaining $25,000 will have to be reported as a charitable contribution on 2017 Schedule A.