QCDs from Inherited IRAs
If the owner of an inherited IRA is required to take RMDs from the inherited IRA, can an owner who is younger than age 70 1/2 request QCDs from the inherited IRA? Note: We understand the owner is required to take RMDs based on the deceased owner’s life expectancy because the new owner inherited the IRA in 2019.
I expect the answer is “No, QCDs are not allowed for any IRA owner until the owner has attained the age of 70 1/2”, but I wanted to make sure we weren’t missing a special provision that would allow QCDs for an owner under age 70 1/2 in these circumstances.
Permalink Submitted by Alan - IRA critic on Tue, 2021-12-07 17:08
You are correct. The inherited IRA owner can make QCDs, but not until they reach 70.5 to the day. The inherited IRA (non spouse) owner’s RMDs would be based on their own LE using their attained age in 2020 unless they are older than the original owner and the original owner passed after their RBD. 2020 RMDs were waived, but the divisor is still reduced by 1.0 for 2020 and another 1.0 for 2021.