RMD–Return RMD back to IRA
If a client has already taken out their 2015 RMD I presume they have 60 days to return the funds back to their IRA? I have a client who is anxiously awaiting to see if QCD is alive for 2015 and couldnt be patient to wait and took out his 2015 RMD. I want to advise him to return the 2015 RMD to his custodian as it has been <60 days. Please provide any insight on this situation.
Permalink Submitted by Alan - IRA critic on Thu, 2015-11-12 16:57
This cannot be done since an RMD is not eligible for rollover. Since QCDs have always been approved retroactively to 1/1, as long as the client would donate to charity with or without the QCD, for those who cannot wait a QCD distribution could have been ordered as the first distribution and it would then absorb the taxable RMD. And if the QCD was not approved, the client would just fall back on the RMD distribution being contributed to charity and perhaps could then itemize it. That would avoid the situation with this client.