Can someone make a QCD after satisfying their RMD in the same year?
Client takes their RMD in January 2018 for say $40,000.
Client now wants to donate, say $100,000, from their IRA to charity in 2018 as a QCD, Qualified Charitable Distribution.
Can this $100,000 qualify as a QCD?
Thanks,
Glenn
Permalink Submitted by Alan - IRA critic on Mon, 2018-06-18 22:45
Yes, it is still a QCD and will not be included in client’s AGI. However, it cannot be used to offset the taxable 40,000 already taken as the RMD. To have avoided tax on the 40,000 the QCD would had to have been the first distribution of 2018 so that it would have included the RMD.