Here is a question we received last week by email.  Remember Tradewell  Tax and Financial is a full service firm and we take a hard focus on taxes.  Here is the question:
I will turn 70 1/2 on January 15, 2020. I plan to begin taking RMDs on a monthly basis next year. Can I also do a QCD Qualified Charitable Distribution on a monthly basis to my charity or do I have to do my QCD as a single lump sum distribution prior to taking any of my RMDs? I would like to receive monthly RMD distributions, as well as do a monthly QCD check to my charity. Is this possible?

Thanks Mike

Here is the answer; 

YES and +YES.  IRA owners who are age 70½ and over are eligible to do a QCD. Sounds easy, right? This is more complicated than it might sound. A QCD is only allowed if the distribution is made on or after the date that you actually reach the age 70 ½.  (And we certainly will make sure our client does not make that mistake) not a day before, you just can’t do this in the year you reach 70.5 ..this has to be done the day after you reach this milestone.  So be sure that you are actually 70 ½ when you do the QCD.

Your QCD can satisfy your Required minimum distribution (RMD) . The rules allow QCDs to be paid monthly or as a lump sum. There is also no problem under the rules of having part of an RMD be paid directly to you and part be sent to your charity as a QCD. Your IRA custodian may have their own rules on how many times a QCD can be paid through the year.  We love QCD’ because they are not taxed and can be counted as your entire RMD.  Think about that.  If you’re of age this could make a big difference in the amount you pay in taxes.  We offer the opportunity to set with a fiduciary and receive a second look on your retirement plan and investments.

Tax Prep