RMD Reversal

Submitted by Syed Mahmood on Tue, 2017-12-19 17:05

I qualify for QCD (Qualified Charitable Distribution) as I am over 72 years old. I have automatic withdrawals of my RMD every quarter. The last automatic withdrawal was on Oct. 15, 2017 while I was overseas. I was overseas from September 22, 2017 to November 2, 2017 for family care-giving assistance for my ailing brother and mother-in-law. I would like to put back my last quarter RMD into the IRA and then do a QCD. However, currently I am 6 days over the 60-day limit. Is there any IRS waiver that would apply in my situation so I can reverse the RMD money to IRA and do a QCD?

I would greatly appreciate a prompt response. Thank you in advance!



Submitted by David Mertz on Tue, 2017-12-19 18:03

  • You are not permitted to roll over this money even if it has been less than 60 days since the distribution because RMDs are not eligible for rollover.  All distributions from the IRA are RMDs until you’ve satisfied your entire RMD for the account.  Once distributed, RMDs must remain distributed.
  • You can still make a QCD, but it would be an additional distribution from your IRA, not part of your RMD.

Submitted by Alan - IRA critic on Tue, 2017-12-19 19:56

You might consider saving the amount of your intended QCD, add next year’s QCD to it and have a QCD issued with your first TIRA distribution in 2018. While you will still be taxed on your total 2017 RMD, by doubling up next year you would reduce taxable income by twice as much in 2018. Whether this will save you as much in total taxes of course depends on other variables including the pending tax bill.

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