RMD contribution to Charity

Submitted by Rusty Bynum on Mon, 2019-03-04 19:52

I have a client that in 2018 took a distribution 1 day prior to his 70 1/2 birthday and made a gift to charity. The CPA is asking me if they are able to take the deduction as a charitable donation or not because it was taken a day early? Thoughts or ideas?



Submitted by tomd37 on Mon, 2019-03-04 21:13

It is my understanding that a distribution cannot be counted as a qualified charitable distribution (QCD) unless the distribution is made on or after the day the client actually reaches age 70.5.  It can be counted as a charitable contribution if the taxpayer is itemizing deductions on Schedule A.   Tom D.

Submitted by Alan - IRA critic on Mon, 2019-03-04 22:57

  • Tom is correct. I don’t see any way out of this unless the date 70.5 is attained was figured some other way than the correct way, which is the date 6 months after the date client reached age 70. The QCD actual distribution date governs as well, not the received date. Therefore, the time for mailing is not a factor. The tax code states that the first possible date for a QCD distribution is ON or AFTER the date that the taxpayer reaches 70.5. 
  • This distribution was not a QCD, but it still counts toward the RMD.

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