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?



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.

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.

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