QCD’s From Tradional IRA when also have SImple IRA

Submitted by Janis Sleeter on Thu, 2020-01-23 17:01

Read Ed’s piece today about contributions to traditional IRA’s after 70.5
Just want to confirm if the IRS combines the accounts as far as looking at contributions and QCD’s or not.
I haven’t done any QCD’s yet this year and my contributions to the Simple are minor.
Am I OK as long as I only make QCD’s from the traditional IRA and contributions to the SImple?



Submitted by Alan - IRA critic on Thu, 2020-01-23 17:38

  • Yes. Your SIMPLE IRA (or SEP IRA) contributions do not reduce QCDs, only traditional IRA contributions at 70.5 or later do. You cannot do QCDs from an on going SIMPLE IRA still receiving contributions, but once the SIMPLE IRA no longer met that definition, you could do a QCD from it that would not be reduced due to the former SIMPLE IRA contributions, but WOULD be reduced if you made any deductible TIRA contributions.
  • Likewise, if you had an inherited IRA from which you made a QCD, that QCD would be reduced if you also made a deductible TIRA contribution to your owned IRA.
  • Married taxpayers would avoid QCD reduction if the QCDs were all made by one spouse, and the deductible TIRA contributions by the other spouse.

Add new comment

Log in or register to post comments