QCD and RMD
Hello Alan–QCD in 2011–I contacted insurer by phone to review their process and what was required of me. As instructed, I wrote a letter to insurer requesting all QCD checks be written in sequential order prior to RMD balance check. Once the QCD checks were written, the last check written was for RMD balance to me. All checks mailed to me and I forwarded to selected charities.
I contacted the insurer again this year and the procedure is the same. Are you aware of any changes that would negate this process? Also, this info is placed on 15a and 15b on Form 1040.
Thanks,
brndflc
Permalink Submitted by Alan - IRA critic on Sun, 2013-05-19 03:22
Process remains the same. You report the full distribution total on lines 15a and 15b and enter QCD next to 15b reducing 15b by the amount of the QCD. It’s the same procedure for reporting a rollover except you show QCD instead of “rollover”. Note that the QCD can be either less than or more than your RMD, but always take care of the QCD first or at the same time.
Permalink Submitted by Maria Difalco on Mon, 2013-05-20 18:12
I also plan to withdraw an additional 2-3% from contract value. (The rmd/qcd monies come from my annual income rider payout) I will wait a couple of weeks so there is no question as to seperate transactions. Is this ok or should I approach it differently.? Thanks. brndflc
Permalink Submitted by Alan - IRA critic on Mon, 2013-05-20 18:43
This is OK. Once your QCD and RMD (if RMD greater than QCD) distributions are made for a year, there are no restrictions or timing requirements for any additional distributions or Roth conversions.
Permalink Submitted by Maria Difalco on Tue, 2013-05-21 18:32
Non-working (retired) friend told by his CPA it was ok for him to redeem series EE bonds and deposit monies into TIRA and ROTH accounts. I was under the impression you needed to be working to continue making deposits to both–unless through transfer or conversion. Am I mistaken?Thanks, brndflc
Permalink Submitted by Alan - IRA critic on Tue, 2013-05-21 18:48
You are correct, to make a regular IRA contribution you must have taxable compensation defined as wages, net income from self employment, alimony, or your spouse must have such taxable compensation which you can use for a spousal contribution. Starting with the year taxpayer reaches 70.5, such IRA contributions can only be made to a Roth IRA, before that contributions can be made in any combination to a TIRA and Roth IRA but the total cannot exceed the age 50 plus limit of 6,500 for 2013.
Permalink Submitted by Wm McQuerry on Wed, 2018-01-31 16:44
3qacan I take my RMD out in Dec for 2017 and the next month in January take my RMD for 2018
Permalink Submitted by Alan - IRA critic on Thu, 2018-02-01 02:16
Yes, you can do that.