Roll RMD taken 12-19-2012 to make 2012 QCD by 1-31-2013?
I’m aware you can make a qualified charitable distribution(QCD) by 1-31-2013 and have it count as a 2012 QCD.
I have a client who waited until 12-19-2012 to take her IRA RMD as she was hoping the QCD law would come back. As it didn’t look like it would, she took her IRA RMD on 12-19-2012.
She’d like to roll the 2012 IRA RMD taken 12-19-2012 back into her IRA as the 60 day rollover period has not yet expired (or has it if it is an RMD?). Then she’d like to make a QCD in the amount of her 2012 IRA RMD prior to 1-31-2013 and have it count both as a 2012 RMD and 2012 QCD. Do you believe this is allowable?
Thanks!
Permalink Submitted by Alan - IRA critic on Tue, 2013-01-15 00:32
Yes, but not the way you stated. She must simply write a check to the charity no later than 1/31/2013 of the amount she has already received and wants to report as a 2012 QCD. She cannot roll funds back to the IRA and that would have been an unnecessary step anyway. In doing this indirect transfer (she writes the check) she can erase taxation of her RMD and even more if she wants to donate more than her RMD up to 100k maximum.