Decedent IRA Distribution to Charity

Can the distribution be tax free if it goes directly to a charity?

Also, can this count as RMD?



If Congress extends the qualified charitable distribution for 2010, an inherited IRA could be used for the qualified charitable distribution, but the age 70.5 requirement for the beneficiary would still apply. If the beneficiary had reached 70.5 to the day they could make a transfer to a charity and the RMD would be credited by the amount transferred.

The extension of this provision is included in an extenders bill now pending in Congress. It has a pretty good chance of passing and the charitable lobbies are actively pushing for it. Therefore, you may wish to delay your 2010 RMD pending resolution of the matter.



Thank you, Alan. Please keep us posted on the outcome of that pending bill.



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