QCDs and monthly disbursements
I have a client that is taking their RMD on a monthly basis ($500). They have already taken 3 disbursements (Jan, Feb., & Mar.). Beginning in April, can they begin to designate portion of their $500 monthly disbursements as a QCD? i.e. $350 as a QCD and the remaining $150 as a RMD?
Permalink Submitted by Alan - IRA critic on Thu, 2019-03-14 23:42
Yes, as long as they are at least 70.5 to the day, they can request a QCD check. However, they will have to check with the IRA custodian to determine if they will still get the full $500, or if the custodian will reduce the $500 by the amount of the QCD. Since they have already received 1,500 to date, so that portion of their RMD cannot be offset by the QCD. QCDs can derail automatic RMD services or installments, so client needs to check with the custodian to determine how the $350 QCD will affect the rest of his April distribution.
Permalink Submitted by David Cowee on Fri, 2019-03-15 13:54
Thank you for your quick response!