Does an RMD count at age 72?

[turbineinfo]

I turn 72 in 2026. I want to start taking RMDs early (in the form of a QCD). I don’t want to wait till the required age of 73. I understand the IRS to state “ Moreover, for those who are at least 72, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.” Per the article https://www.irs.gov/newsroom/reminder-to-ira-owners-age-70-and-a-half-or-over-qualified-charitable-d... Am I correctly understanding this article to assert that at age 72, a QCD from my IRA account counts as an RMD? Am I missing something?

[VolvoGirl]

I don’t think you need to start taking RMD until you turn 73.  I just turned 72 last week and don’t start my first RMD  until 2026.   BUT I have already been  making QCD distributions.  If you are 70 1/2 you can make QCD.   

See Pub 590B

https://www.irs.gov/pub/irs-pdf/p590b.pdf

Your required beginning date. The date you must begin receiving RMDs is determined by the date you reach age 72. See the following to determine your applicable required beginning date.

Age 72 after December 31, 2022. If you reach age 72 after December 31, 2022, you must begin receiving required minimum distributions by April 1 of the year following the year you reach the age 73.

Age 72 in tax years 2020, 2021, or 2022. If you were born after June 30, 1949, you must begin receiving required minimum distributions by April 1 of the year following the year you reach age 72.

Age 70 ½ for tax years 2019 or earlier. If you were born before July 1, 1949, you were required to begin receiving required minimum distributions by April 1 of the year following the year you reach age 70 ½.

[VolvoGirl]

Just to clear up…..that is an old IRS article you linked to.  Use IRS pub 590B.   I just want to point out that the QCD will count towards your RMD when you are required to start taking your RMD at 73 in 2027.     But you can actually start making QCD at 70 1/2 like me.   

[turbineinfo]

Thank you. I was wondering if this article was out of date. Unqualified statements like the one I referenced add to the confusion.

[turbineinfo]

May I add, the verbiage such a “must” or “required” seem to refer to the latest possible time to enact an RMD. I’ve found nothing that discusses the earliest possible time when a distribution can count as an RMD.

[dmertz · Accepted solution]

A distribution during the year is not an RMD if no RMD is required for that year or if prior distributions made that year have already satisfied your RMD for that year.  A distribution made in one year is not permitted to be treated as satisfying any RMD for a future year.

A QCD made during a particular year will satisfy some or all of an RMD for that year if the RMD for that year has not already been satisfied with other distributions made earlier that year, but there is no requirement that a QCD can only be made if it satisfies an RMD.  The only requirements to make a QCD are that it must be made after actually reaching age 70½, that the contribution is made to a qualifying organization, and that the amount not exceed the annual limit or the amount of pre-tax funds in your IRAs.

[VolvoGirl]

---

@turbineinfo wrote:

May I add, the verbiage such a “must” or “required” seem to refer to the latest possible time to enact an RMD. I’ve found nothing that discusses the earliest possible time when a distribution can count as an RMD.

---

 The earliest time to count as an RMD is when you are required to take a minimum distribution.  

 I wrote this up for you about taking Distributions and RMD and QCD.  Hope it helps and explains it more.

You can take a distribution any time. But if you are under 59 1/2 there is a 10% Early Withdrawal Penalty unless you have an exception.

IRAs and the RMD (Required Minimum Distribution) originally started in 1974. You had to start taking the RMD by the end of the year you turned 70 1/2. But they have been pushing the starting year back as people get older. A distribution will only count as an RMD when you are required to start taking it. Other than that a RMD is just like a regular distribution. The RMD is not noted or broken out on your tax return unless you didn't take the full amount RMD.

You can start making QCD (Qualified charitable distributions) when you turn 70 1/2. See IRS Pub 590-B page 13. The max you can exclude from taxes is $100,000 for each spouse. I think it goes up to 105,000 for 2025. A QCD will count towards your RMD when you reach the age to start taking the RMD.
https://www.irs.gov/pub/irs-pdf/p590b.pdf

To determine the RMD you need to use the worksheet on 590-B page 46 or 47 and the Life expectancy tables starting on page 48.

[turbineinfo]

Thank you. 

[turbineinfo]

Thank you.