How does the QCD anti-abuse rule affect my retirement accounts? Is there new guidance that I need to know about?
That's the question posed to Jeffrey Levine, director of advanced planning at Buckingham Wealth Partners, in this episode of Ask the Hammer.
And the answer is this:
With the passage of the SECURE Act, however, IRA account owners must now reduce their intended QCDs by any contribution amounts made into their IRAs after age 70 1/2 (the age cap in place to make IRA contributions before the passage of the SECURE Act), to the extent they have not already been used to reduce their QCD, wrote Jeffrey Levine in a recent post.
In other words, he wrote, IRA contributions made after age 70 1/2 cannot be turned around to be used as QCDs… and the rules effectively require a “LIFO” treatment that ensures post-age-70 1/2 contributions will first and foremost be used to reduce future QCDs.
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