Qualified Charitable Distribution ( QCD) RMD date
If I reach age 70 on June 15 2018, can I take a QCD now or do I have to wail til December 15 2018 when I actually turn 70 1/2.
If I reach age 70 on June 15 2018, can I take a QCD now or do I have to wail til December 15 2018 when I actually turn 70 1/2.
Permalink Submitted by Alan - IRA critic on Wed, 2018-06-13 20:16
You must wait until 12/15 when you actually reach 70.5. That means that any distributions done this year before that date will count toward your RMD and must be included in your income. Those distributions cannot be offset by any QCD you do on 12/15 or later, so you probably will want to wait until that date before taking any IRA distribution this year. Of course, 2018 is your first RMD distribution year, and all or part of this RMD can be deferred to as late as 4/1/2019.
Permalink Submitted by Mary K. Dean on Wed, 2019-05-29 20:56
Given the above (QCD taken in year turning 70 1/2 but before 70 1/2 birthday), the QCD is taxable as an IRA RMD. Is it also deductible as a itemized charitable contribution?
Permalink Submitted by Alan - IRA critic on Wed, 2019-05-29 21:28
Yes, if not a QCD it can be itemized, although the total donation only offsets the income if the taxpayer already has itemized deductions equal to the recently increased standard deduction.
Permalink Submitted by Mary K. Dean on Fri, 2019-05-31 00:49
Thanks Alan. I just wanted to clarify what you said. So even if the donor completed a QCD brokerage form, it is not considered say a defective QCD just a deductible contribution. In short it is not a QCD but a contribution that can be itemized?
Permalink Submitted by Alan - IRA critic on Fri, 2019-05-31 02:42
Correct. It is treated as if distributed to the taxpayer and does apply to the RMD, but then donated by the taxpayer to the charity and eligible to be itemized.