IRS Issues Guidance on 2010 RMD's and 2010 QCD's
January 4, 2011
The IRS has announced that a person who uses the special January QCD (Qualified Charitable Distribution) rule may also have such distribution count towards his or her RMD (Required Minimum Distribution) for 2010. The IRS recently issued the 2010 version of Form 5329, Additional Tax On Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. The instructions for Form 5329 state that a QCD taken by January 31 of 2011 will count towards a person's 2010 RMD.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 expressly provides that a person can elect to have QCD's made in January 2011, treated as if made in 2010. The law did not address whether such QCD also could be used for RMD purposes. The IRS has now issued additional guidance.
We have revised our Form #57-C, Certification for Tax-Free Charitable Distribution from a Traditional/Roth IRA, to provide for this special election.
If you have any questions please call us at 800.346.3961.
Categories: Pension Alerts
