Taking a Distribution from an IRA after age 70 1/2 for a charitable gift after the RMD has been satisfied | Ed Slott and Company, LLC

Taking a Distribution from an IRA after age 70 1/2 for a charitable gift after the RMD has been satisfied

If an individual has already satisfied his RMD for the 2019 tax year, and he wants to give $5,000 to his college or his 50th class reunion gift, does he still get to take advantage of the charitable giving RMD rules for this year? How does he report it, if the custodian will include it on his 1099R?

Custodians report QCDs on Form 1099R in the same manner as any other distribution. There is no special coding for the QCD. The individual can still do a QCD in this case, and it will not be taxable, but it also will not apply to the RMD, which had been fully completed prior to the QCD. Therefore, assuming no IRA basis, if his RMD was 10,000 and the QCD 5000, he (or his tax program) would report 15,000 on line 4a, 10,000 on 4b, and enter "QCD" next to 4b.

To qualify as a QCD that would be excludible from income, the contribution must be sent directly to the charity by the IRA custodian.  Money that has already been distributed to the individual (say, the individual's RMD), cannot be later donated to a charity and be a QCD.  It would instead be includible in income and claimable as a charitable contribution on Schedule A.

 

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