QCD from RMD after CARES Act?

[Ringers]

A client just asked me if he can still designate a QCD from his RMD later this year.  As of right now, there is no longer a "Required" Minimum Distribution, so my feeling is that there can be no Qualified Charitable Distribution for the balance of 2020.  It would seem that if someone took their 2020 RMD prior to the CARES Act, then they could have had a valid QCD, but not any longer without the IRS making a specific exception.  What do you all think?

 

I told my client what I thought but told him to watch the news and read the papers for possible future IRS clarification.  I seem to be using that phrase a lot lately.

[jklcpa]

I think that was somewhat addressed with the SECURE act when the RMD age was raised to 72. QCDs could still be made directly to the charity for those over 70.5 but without a "required" distribution, the QCD couldn't be used as an offset.  I would assume that the same applies to the CARES act too, but all I could find on it so far is a 3/30 article in Forbes.  See "How Does This Impact QCDs" here:

https://www.forbes.com/sites/jamiehopkins/2020/03/30/cares-act-drastically-changes-required-minimum-distribution-rules-for-2020/#3eb1b00519a0

[Lion EA]

A QCD could before and can be now used over and above an RMD (when required) up to $100,000 (is that the amount?). So, if you want to give to charities in this time of need and you expect to take the standard deduction, you will not get any benefit except for the new $300 adjustment to income. If you use your retirement plan to give directly to charities, your retirement withdrawal is NOT income up to your donations. I will probably use that, as our other accounts are low, and the needs are high for food banks, etc. I stopped my RMDs for this year, but will probably take a QCD soon to give to some local organizations and our church for this year, sooner rather than our more usual December.

[Roberts]

I've been telling people the last few days that they won't have to take a RMD for 2020. All the people who complained about having to take a RMD every year and being forced to pay taxes are shockingly not going to stop taking their RMD because they need the cash. So yes, all that complaining every year was for nothing. Would it be a jerk move to remind them next spring that they weren't REQUIRED to make the RMD when they complain about paying taxes?

[Lion EA]

I keep wondering if Circ 230 ways anything about telling our clients, "I told you so!"?