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Does an RMD count at age 72?

Forum|Forum|1 year ago
February 4, 2025
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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-distributions-are-great-options-for-making-tax-free-gifts-to-charity 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?

Best answer by dmertz

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

Employee

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.

T

turbineinfoAuthor

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.

D

dmertzAnswer

Employee

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

Employee

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.