Traditional IRA sequence of distributions
Mike married and age 74 in 2021, started taking traditional IRA distributions at age 70 1/2. His IRA balance
as of 12/31/20 is $ 200,000. He wants to take some of his 2021 RMD and have the custodian write checks payable to two churches as QCD
1. What is the amount of his total RMD in 2021. And what table to use.
2. Can he give his RMD in 2021 as follows:
First —To first church $ 1, 000 QCD
Second—– to himself $ 4,000
Third —– to second church, the remaining balance; and how much wold it be ? QCD
3. Could the sequence above in # 2 be changed in any manner as long as the total distributed is
at least the RMD required
Permalink Submitted by Alan - IRA critic on Sun, 2021-09-19 16:58
Assuming his spouse is not more than 10 years younger, his 2021 Uniform Table divisor is 23.8, resulting in an RMD of 8,403.36.
Yes. Second church donation would be 3,403.36 if he wants that QCD to complete his RMD. Taxable amount will be 4000, the amount he kept.
Yes. To reduce the taxable portion of the RMD, all QCDs must be completed before his RMD is completed. With these figures, the order of distributions would be interchangeable.