A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Chadmere Capital Inurance and Financial Services, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Chademere Capital Insurance and Financial Services
(803) 242-1050

CLOSE

USING QUALIFIED CHARITABLE DISTRIBUTIONS TO OFFSET REQUIRED MINIMUM DISTRIBUTIONS AND DISTRIBUTIONS OF ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG

By Ian Berger, JD
IRA Analyst

Question:

Hi, Ed,

I am hoping I get to attend one or more of your events IN PERSON this year!

If you have time for a refresher . . . .

Jon’s 2021 RMD is $200k. He takes $100k as a distribution to himself in February and later, he decides to satisfy the remaining $100k as a QCD in November.

Does this work as far as the timing of the QCD?

Thank you,

Paula

Answer:

Hi Paula,

Look forward to seeing you in person hopefully very soon.

The QCD Jon makes in November can offset $100,000 of his $200,000 2021 RMD since it will be taken before the second RMD installment would have been taken. QCDs made after an RMD is taken cannot be used to retroactively satisfy the RMD.

Question:

Are contributions that are made to a traditional IRA (without taking the deduction) and then converted to a Roth IRA (backdoor IRA) available to the contributor to take out at any time tax and penalty free – the same as contributions made directly to a Roth IRA?

Thanks,

Jim

Answer:

Hi Jim,

Like Roth IRA contributions, Roth conversions always come out tax-free. However, any part of a conversion that was taxable at the time of the conversion would be subject to the 10% early distribution penalty if you are under age 59 ½ at the time of the distribution and you did that conversion less than five years ago. If the converted funds were not taxable at the time of the conversion, the penalty never applies. This would be the case with a nondeductible traditional IRA contribution that is converted.

https://www.irahelp.com/slottreport/using-qualified-charitable-distributions-offset-required-minimum-distributions-and

Ready To Take

THE NEXT STEP?

 

For more information about any of our products and services, schedule a meeting today.

Or give us a call at (803) 242-1050

Investment advisory services offered through Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser. Nothing on this website constitutes investment, legal or tax advice, nor that any performance data or any recommendation that any particular security, portfolio of securities, transaction, investment or planning strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations, execution of required documentation, and receipt of required disclosures. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #175083.

 ADV Part 2A & Form CRS              Privacy Policy