QCDs and More than One Traditional IRA

Submitted by Kurt Bartley on Fri, 2019-04-26 20:22

From Publication 590-B (2018), Distributions from Individual Retirement Arrangements (IRAs): “If you have more than one traditional IRA, you must determine a separate required minimum distribution for each IRA. However, you can total these minimum amounts and take the total from any one or more of the IRAs.”

In totaling the minimum amounts from each of the IRAs to determine the total RMD, can you choose one of the IRAs in which to make a QCD to count toward your RMD?

Kurt Bartley, Chartered Advisor in Philanthropy (CAP®)



Submitted by Alan - IRA critic on Fri, 2019-04-26 20:50

  • Yes, you can make a QCD distribution or multiple QCD distributions from just one of the IRA accounts or you can do QCDs from both. But timing is critical if you want the QCD to offset taxable income from an RMD. Therefore, you should avoid taking a non QCD distribution that will not leave enough of your RMD left to be offset by the amount of your QCDs. To avoid confusion, do all your QCDs before you take any non QCD distributions.
  • If your RMDs are 6000 for IRA 1 and 12000 for IRA 2, you could do an 18000 QCD from either IRA account and your total RMD would be satisfied with no taxes due.

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