Timing of QCDs
Is there a particular time that a QCD must be taken out? I just heard a Financial planner and CPA who says she asks her clients to take out their QCDs at beginning of the year.
My clients tend to take the QCDs at end of year. Does the timing matter?
Permalink Submitted by Alan - IRA critic on Thu, 2022-10-06 19:21
QCDs must be completed before the RMD is completed, or the QCD will not reduce RMD taxable income. If there are multiple IRA accounts, the total QCD for all of them needs to be completed before the total RMD is completed. But if there are no planned distributions of any type until later in the year, the QCD can wait. That said, QCDs and RMDs should never wait until December because of risk that the distribution will be late. The charity should ideally be able to cash the check before year end as well to avoid any questions of when they received the check.