QCD Options
A client takes out her $200k RMD (100% of her RMD amount). A week later, she wants to make a QCD for $50k. Could that same client put $50k back into the IRA (under the 60-day rollover rule) and then subsequently send out a QCD for $50k?
A client takes out her $200k RMD (100% of her RMD amount). A week later, she wants to make a QCD for $50k. Could that same client put $50k back into the IRA (under the 60-day rollover rule) and then subsequently send out a QCD for $50k?
Permalink Submitted by Alan - IRA critic on Thu, 2024-08-22 17:20
No. RMDs are not eligible for rollover, so a rollover would result in an excess contribution to the IRA. Client has 2 choices – either wait and do the QCD next year or do a QCD this year, which would not be taxable, but neither would it reduce the taxes on the RMD.
A QCD should be completed before the RMD is completed if the intent is to reduce RMD taxes.
Permalink Submitted by BruceM on Fri, 2024-08-23 17:11
Yes, I do my QCDs in last week of November or first week of December. But I make sure the IRA custodian has mailed out the checks and they have not been returned undeliverable before I transfer the remainder of my RMD out of the IRA.