QCDs - Changes due to SECURE 2.0’s option to elect being treated as the deceased spouse?

Submitted by Arminta Stacy McKelvey on Thu, 2025-05-15 16:19

I know previously, that if one inherited an IRA from someone else, they could only use the account for QCDs if they themselves were over age 70.5. Does the new provision under Secure 2.0 to elect being treated as the deceased spouse change this; i.e. allow a spouse who is under 70.5 to do QCDs if the decedent was eligible to do so?

I.E. A 75 year old client passes away, leaving behind a 68 year old spouse. The client did not satisfy the RMD for the year before passing away and the client spouse wants to make charitable contributions in honor of the deceased spouse. Could electing for the spouse beneficiary to be treated as the decedent under this provision allow for said spouse to make QCDs, even though they are only 68?

(I tried to find an answer online but everything to do with this topic appears to have been written before this election was an option).

Thank you so very much for your insight into this matter!

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Permalink Submitted by Alan - IRA critic on Fri, 2025-05-16 09:40

The new spousal option to be treated as the participant will lower the beneficiary RMD of the surviving spouse, but QCDs are still not allowed until the recipient is age 70.5 whether the recipient is the beneficiary or the owner.

The year of death RMD amount is the RMD for the deceased spouse, but post death the account belongs to the beneficiary who is the recipient and whose SSN will be shown on the 1099R.

IRA custodians will therefore only report a QCD with the new “Y” 1099R distribution code when the distribution is made after the beneficiary reaches 70.5.