QCD from Inherited IRA
This has come up recently where I work and I’m just curious of your opinion of the situation. We have an inherited IRA established for a trust beneficiary. The beneficiary of the trust is over 70.5 and their age is being used to calculate RMDs. They feel because the age of the beneficiary in the trust is being used for RMD calculations it entitled the trust beneficiary to make a QCD. A couple places I have consulted disagrees with this but we have had a CPA say otherwise. What are your thoughts on this?
Permalink Submitted by Alan - IRA critic on Fri, 2020-02-07 18:05
Am not aware of any specific guidance on this, but since the inherited IRA is maintained for the benefit of a trust rather than an individual and a trust does not have an age, reporting a QCD seems pretty aggressive. But it should not be an issue if the trustee of the trust eventually assigned the inherited IRA to an individual beneficiary of the trust and that individual did a QCD from the inherited IRA.