IRA Rollover to do a QCD
I have money in a 401(k) plan as of today, October 14, 2025.
I turned 71 years old this year (my 71st birthday was in June, 2025).
I’d like to do a QCD before 12/31/2025.
I currently have zero TIRA assets.
Can I roll $2,000.00 from my 401(k) to a TIRA right now and then do a $1,500.00 QCD from the newly established TIRA to my favorite 501(c)(3) before 12/31/2025 ?
Thank you in advance for your help.
Permalink Submitted by Alan - IRA critic on Tue, 2025-10-14 10:44
Yes, you can do a QCD from the IRA after the IRA receives the rollover funding. The IRA distribution will be tax free but will not reduce your taxes in the current year until 2027, your first RMD year. However, QCDs done this year and next year will slightly reduce your IRA balance and therefore reduce future RMDs.
If you are looking for tax savings this year and can itemize your deductions, you would donate from non IRA funds this year instead of doing the QCD because that would lower your taxable income. However, most seniors are not able to itemize.