age 72 RMD

Submitted by Douglas Bauerband on Tue, 2023-06-20 20:59

Client turns age 72 this year:

1. Am I correct in stating that he does not have to take an RMD until he is 73 next year?

2. Is it just the RMD that can be used for QCD or can they distribute more directly to a charity and have no tax on the contributions?

Thank you
Douglas

Permalink Submitted by Alan - IRA critic on Tue, 2023-06-20 22:05

Correct, age 73 next year with RBD 4/1/2025.
A QCD can still be done at 70.5, and if done this year the QCD will be non taxable, but will not reduce any taxes otherwise due. But it will reduce the IRA balance and therefore reduce future RMDs. An option would be to delay the 2023 QCD to next year, then double up to the extent it will reduce the taxable 2024 RMD.