Inherited IRA to Charitable Foundation
Individual age 62 just inherited an IRA from his mother. He wants to transfer this to his OWN charitable foundation he established 2 years ago. Would such a transfer have the same tax consequences as transferring it to an OUTSIDE charity, charitable trust or charitable foundation? It seems to me that since any charity, charitable trust or foundation is a separate entity, the same tax consequences – and minimum age 70-1/2 restriction would apply. Would appreciate your clarification.
Permalink Submitted by mk foss on Tue, 2012-07-31 23:42
The special provision that allowed a required minimum distribution to be paid to a charity expired 12/31/11. The IRA owner or beneficiary had to be 70-1/2 and the charity could NOT be a private foundation or donor advised fund.
So in 2012 transferring it to a private foundation would have the same tax consequences as going to a public charity. The IRA would be fully taxable and the individual would take a charitable deduction.