Re-charactization of a 2020 QCD

[pstuverud]

Back in January, 2020 I made a Qualified Charitable Distribution (QCD) from my IRA as part of the  RMD requirement.

Then, several months later, under the SECURE act, the IRS removed the 2020 RMD and allowed previously made distributions to be reversed if done by Aug 31.

Can I reverse the charitable distribution, too? Specifically, can I transfer the donation amount from my taxable account to the IRA as a rollover and then re-characterize the donation as a Schedule  A itemized charitable deduction instead of a QCD? It might make more sense tax-wise.

Any issues?

Thanks,

Paul

[Critter-3]

That is a valid option ... if it works for you then go for it.  

[macuser_22]

You cannot "recharacterize"  a RMD,  you can roll is back into the IRA account as a CARES act rollover.    Any money already sent to a charity by the IRA custodian is gone, however, if you replace that money with other funds then you can rollover the entire amount.      If rolled over then you will not be able to claim the QCD and get the tax break - it would simply be an out-of-pocked charitable donation that can be a schedule A itemized deduction if you have enough deductions to itemize.

Just because you make a charitable donation from an IRA does not make it a QCD until you claim it as such and nothing requires you to claim it as a QCD at all.

[SteamTrain]

Removed this entry: ...missed thinking about ALL the proper details !

[rjs]

@SteamTrain  The OP is not just choosing to not claim the QCD. He's also returning the amount of the QCD to the IRA as a rollover. So he will show the distribution as a rollover on his tax return instead of as a QCD. But the bottom line is the same. It won't be included in his AGI, so it won't affect Medicare premiums or taxable Social Security.

[SteamTrain]

@rjs 

Dang...Of course....obviously I needed another day to think about it.