QCD
If my client turns 70 in May of 2018 and wants to make a Qualified Charitable Distribution, can he make it in January 2018 since that is the year in which he turns 70.5 or does he have to wait until he is 70.5 before he makes the QCD?
I know that you can take an RMD at any time during the year you turn 70.5 and it will qualify as an RMD, but i’m not sure if the rules are any different for a QCD. Thanks
Permalink Submitted by David Mertz on Tue, 2017-09-05 21:44
To make a QCD, he must wait until he has actually reached age 70½ in November 2018. Distributions made in 2018 prior to reaching age 70½ will satisfy the RMD but will not be a QCD even if transferred directly to the charity in the same manner as required of a QCD. The distribution paid to a charity in 2018 made before reaching age 70½ would have to be included in income and reported as a charitable deduction on Schedule A.