Qualified Charitable Distribution
For qualified charitable distributions, If the full RMD is satisfied from January to July, then in December clients make a QCD, can they still deduct that distribution and the excess RMD taken from January to July simply count as ordinary income distributed from the IRA. Or, does the QCD have to occur before the full RMD is distributed?
Permalink Submitted by Alan - IRA critic on Tue, 2019-04-23 19:23
Because the first dollars distributed in an RMD must be applied to the RMD, in this case the RMD will be taxable. The QCD done later on is still a QCD and non taxable, but cannot be applied to any part of the RMD since the RMD had already been completed.