QCD from spousal rollover

Client would like to donate the proceeds of a spousal rollover to qualified charities – about $40,000. She is 80. Can she do so? Thanks, Mary



Client can do QCDs up to 100,000. per year. However, client probably wants to be sure that the 40,000 will offset her RMD taxable income, so there are timing requirements to be met. The first distribution in any year is deemed to apply to the RMD for all IRAs if client has more than one.  Therefore, to be safe her first distributions in 2019 should be the QCD distributions. If her RMD is over 40,000, then she can take the rest of her RMD after the QCDs are completed.  There are other ways in which the RMD can be offset by RMDs depending on timing and amounts, but doing the QCDs first is safer because it will always work. An inherited IRA rolled over by the surviving spouse is just treated as any other IRA owned by the surviving spouse.



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