As I understand it, I can donate by QCD from an IRA but not a 401K. With the new tax law the QCD path because much more valuable to some, including myself.
So - if I roll my 401K into an IRA can I than use QCD? Can I roll a
401K into an existing IRA? If the roll over occurs during the year how is the RMD computed?I also understand that I can make a QCD contribution to a donor managed fund so I only need one QCD transaction to make many smaller contributions.
Do I have this all correct?
No. The donor advised fund is not permitted. See
"To qualify for QCD treatment, the rules also stipulate that the distribution must go to a public charity (as described in IRC Section
170(b)(1)(A)), and thus cannot go to a private foundation, nor (as specified in the tax code) may a QCD go to a charitable supporting organization or a donor-advised fund, either."Next question is about how RMD is calculated after a roll over.
I believe RMD is based on the value on Jan 1. I also understand that
401K and IRA RMD's can't be combined - each has it's own.So if I move all or part of a 401k into an IRA during the year, what happens? Clearly if I move all I can't then take an RMD from the 401K.
RMDs can't be rolled over. Using 2018 as the example and assuming that you are required to take RMDs, your 2018 RMD for your 401K is based on the value on 12/31/17. Ditto for a traditional IRA. You are required to take the 401k RMD in 2018. If you intend to rollover the 401K to an IRA, you must still take the RMD from the 401k before you empty the 401k.
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