Using QCD Strategy after RMD has been taken for the year
If a client has a $100,000 IRA and their RMD for the year is roughly $4,000, and they take the $4,000 to meet their RMD to themselves as a distribution to the client, can the client then take an additional amount out later in the year directly to a charity and still use the Qualified Charitable Distribution strategy?
It appears this may be valid since the maximum allowed under this strategy is $100,000, so you must be able to do more than the RMD to charity, but I did not know if taking a distribution to themselves early in the year that already meets the RMD, takes away the opportunity for future distributions using the QCD approach.
Permalink Submitted by Alan - IRA critic on Thu, 2017-07-20 19:34
A QCD can be less than, equal to, or more than the RMD. In this situation, since the RMD was previously completed the QCD will be valid but cannot be applied to the RMD, although it can be applied to distributions in excess of the RMD. Only cllent’s first distribution will be taxable.