QCD’s From Tradional IRA when also have SImple IRA
My husband and I each have a traditional IRA and a Simple IRA through our business.
We know we cannot make QCD’s directly from the Simples in years we or our business contribute.
The way we have understood it, we can take the RMD’s for both the traditional IRA and the SImple from the traditional IRA.
We have made QCD’s from the traditional IRA’s since we were 70.5 and one day.
Would there be any problem starting with 2020 with our taking the total RMD’s from the traditional and making QCD’s from the traditional IRA’s?
Thanks for you thought on this.
Permalink Submitted by Alan - IRA critic on Thu, 2020-01-09 00:53
No problem. The IRA RMD aggregation rules allow you to satisfy the RMDs for all IRAs in any combination. Therefore, the entire RMD including the SIMPLE RMD can be taken from the TIRA account and QCDs can be utilized. You are correct that a QCD cannot be made from an on going SEP or SIMPLE IRA as “on going” is defined, but if you also own a TIRA, you avoid the effects of that limitation.