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.
Permalink Submitted by Alan Spross on Mon, 2008-11-10 18:18
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.