Some information you may find helpful.
First, for individuals who attain 70.5 years of age after 2019, the age at which RMDs must begin is raised to age 72. Age 70.5 continues to be the age at which QCDs (so-called IRA rollover gifts to charity) can begin to be made…but for individuals who haven’t reached age 72, the QCDs don’t count for RMD purposes because RMDs don’t have to begin until the year in which RMDs occur. Please don’t blame me for this complexity.
Second, an apparent problem. For any individual able to make a QCD for a calendar year, the cap on the total amount of QCDs for the year is reduced by $1 for each $1 the individual contributes to his or her IRA for the year.
Is this going to be a major problem? Time will tell, but I believe it won’t be.
Reason: Almost all really sizable IRAs are created at retirement, when the retiree rolls money from a corporate pension or 401(k) plan tax-free into an IRA the retiree has created.
These are the IRAs from which sizable QCDs are typically made. And the retiree who owns such an IRA is typically going to play golf, travel or spend time with the grandkids rather than take another job and make IRA contributions.
Small QCDs that come from relatively small IRAs are just plain unlikely to be affected by the cap reduction imposed by the SECURE Act.
By Jon Tidd