MRD to charity in Jan 2011
Can this still count as part of your MRD for 2010. This would be done under the special rule that I read that making chaitable distributions during January 2011 can be treated as if they made in 2010.
Can this still count as part of your MRD for 2010. This would be done under the special rule that I read that making chaitable distributions during January 2011 can be treated as if they made in 2010.
Permalink Submitted by Alan Spross on Tue, 2010-12-21 23:16
Yes, you could make the 2010 QCD in January, and it WILL count for your 2010 RMD, but only if you have not yet taken any TIRA distribution year to date. If you already took a distribution that distribution must be applied against your RMD and cannot be rolled back.
You could still make the QCD in addition to the RMD if the RMD is already out. It would be a more tax efficient way to contribute since the amount would NOT be in your AGI and not affect taxation of your SS benefits; also you would not have to be able to itemize.
But if you do the tranfer is January, we don’t quite know how the IRS is going to ask you to report it. Note that the original QCDs were reported on the 1099R just like any other distribution and the taxpayer was given instructions to show the QCD on line 15 of Form 1040. Something more detailed will be necessary in this case because you are breaching a calendar year. Accordingly, I would not even want to wait until January, would try to take care of it before year end if at all possible.