Timing of QCD/RMD
The post ” OUR QCD QUESTIONS ANSWERED”, includes the following sentence”
“You can use a QCD to satisfy your RMD for the year as long as the QCD is made before the RMD comes out. “
Can you explain why it is necessary to have the “QCD is made before the RMD comes out”?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2021-09-20 21:34
Because the first distributions in an RMD year are deemed to apply to the RMD, so if the RMD is completed before all QCDs are done, the RMD income is not offset by the QCDs. A simpler general statement is that if you want a QCD to reduce the taxable RMD, you must complete these QCDs before your RMDs are completed.