Permalink Submitted by Alan Spross on Tue, 2010-12-21 18:12
This seems to be the issue that press releases overlook. If you already took your RMD perhaps after waiting several months for Congress to act, you are out of luck with respect to the QCD covering your RMD. You might still be interested in making a QCD as a more efficient way to contribute than itemizing the contribution would be, but your QCD will be limited to that benefit. Your RMD that you already took cannot be rolled back to the IRA even if you are still within 60 days. The reason is that your first distribution in an RMD year is deemed to constitute the RMD and an RMD is not rollover eligible.
Therefore, Congress’ guilt feelings for acting so late and therefore extending a 2010 QCD to the end of January only provides more time to make a QCD if you don’t find out about the tax bill until the year is over, but it provides no relief to those who took an RMD earlier in the year.
At least the extension for 2011 is now on the books, so you can avoid this problem for 2011.
Permalink Submitted by Alan Spross on Tue, 2010-12-21 18:12
This seems to be the issue that press releases overlook. If you already took your RMD perhaps after waiting several months for Congress to act, you are out of luck with respect to the QCD covering your RMD. You might still be interested in making a QCD as a more efficient way to contribute than itemizing the contribution would be, but your QCD will be limited to that benefit. Your RMD that you already took cannot be rolled back to the IRA even if you are still within 60 days. The reason is that your first distribution in an RMD year is deemed to constitute the RMD and an RMD is not rollover eligible.
Therefore, Congress’ guilt feelings for acting so late and therefore extending a 2010 QCD to the end of January only provides more time to make a QCD if you don’t find out about the tax bill until the year is over, but it provides no relief to those who took an RMD earlier in the year.
At least the extension for 2011 is now on the books, so you can avoid this problem for 2011.