topic Re: 2020 RMD with QCD in Retirement tax questions

2020 RMD with QCD

doug4654 — Tue, 21 Apr 2020 18:15:36 GMT

FACTS: I am over age 72 and have taken RMDs for several years. I took most of my 2020 RMD early in January. I made QCDs in February which qualify as a small portion of my 2020 RMD. I will complete my 2020 RMD in November thru monthly payments. I am not eligible to roll over my 2020 RMD under the SECURE Act because more than 60 days has passed since I took my 2020 RMD. QUESTIONS: 1. Since my 2020 RMDs are now waived, will my 2020 QCDs still reduce my 2020 tax bill by offsetting a portion of the 2020 RMD I have already taken? 2. What, if any, effect does taking my 2020 RMD have on my overall tax return for 2020? The way I see this is: I will report the 2020 RMD amount less the 2020 QCD amount, as taxable income. My research into this question has resulted in many confusing answers. I apologize for all the "2020s" above! Thank you for your response(s).

Re: 2020 RMD with QCD

dmertz — Wed, 22 Apr 2020 02:45:37 GMT

The QCD will still be treated as nontaxable income. There is no requirement that a QCD be an RMD.
The distribution is treated the same on your 2020 tax return whether or not the distribution is an RMD.

With RMDs waived for 2020, there is no requirement that you have any more distributed from your IRA. Any distributions from your IRA(s) in 2020 are discretionary.

Re: 2020 RMD with QCD

doug4654 — Fri, 24 Apr 2020 16:55:19 GMT

Thank you very much. That makes sense and was what I expected; but the research I tried wasn't really clear on those points.