QCD from a 457 plan
If you have not taken an RMD from your 457 plan for several years because of the still-working exception and you then retire in 2018, must you take a 2018 RMD? If so, can you reduce it by using a QCD? Or can you do that only with your 2019 RMD, assuming you have rolled over the 457 assets to an IRA in 2018?
Permalink Submitted by Alan - IRA critic on Fri, 2018-03-30 22:14
The latter. A QCD can only be done from an IRA distribution, and the 457 RMD must be distributed before you roll it to your IRA. If you do the direct rollover to an IRA in 2018, the 2018 RMD will have to be distributed first. While you can defer your 2018 RMD up to 4/1/2019, if you do that you will have to take both year’s 457 RMDs out before the direct rollover.