QCD in excess of RMD
Please confirm that all QCD’s less than the limit ($105,000 for 2024) are not taxable even if they exceed the client’s RMD. For example, client makes direct QCD’s of $60,000. RMD amount is $50,000. What is the taxable amount of the IRA distribution? Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2025-03-05 16:49
QCDs under the QCD limit are not taxable.
If no non QCD distributions were taken, the taxable amount is 0. However, if there were also non QCD distributions, the order in which these distributions were taken in relation to the QCDs matter.
Remember that the first dollars distributed from any owned IRA are by tax law deemed to be RMDs, whether they are distributed as QCDs or not.