Beneficial IRA – Charitable rollover – transfer

Client age 62 owns a beneficial IRA inherited from a deceased parent.

Another client age 73 owns a beneficial IRA inherited from a deceased parent.

Another client age 72 owns a beneficial IRA inherited from a deceased child.

Does the code allow for a distribution from a beneficial IRA direct to charity after the year of death in the same fashion as a traditional IRA?

If so, is it based on the age of the deceased owner or the age of the current beneficiary.



Roger,
Client’s #2 and 3 can make the QCD, but not Client #1 because that client has not yet reached age 70.5.

Q&A #37 in Notice 2007-7 clarifies that a beneficial owner of an inherited IRA qualifies for a QCD in the same manner as the original owner, ie. after age 70.5 has been reached. For a beneficiary interest, the age of the original owner is immaterial. Note that even though a non spouse inherited IRA requires RMDs in the year following death, those taken prior to age 70.5 cannot be offset by a QCD.



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