QCD and Inherited IRAs
Is there any restriction to making a qualified charitable donation from an inherited IRA? Are the same tax benefits still available for an Inherited IRA donation?
Is there any restriction to making a qualified charitable donation from an inherited IRA? Are the same tax benefits still available for an Inherited IRA donation?
Permalink Submitted by Alan - IRA critic on Thu, 2021-11-04 16:32
The rules are the same as for an owned IRA, including the requirement that the beneficiary has reached age 70.5 before distributing a QCD from the inherited IRA. The benefits are greater if the inherited IRA distribution is an RMD since a QCD before the RMD is completed will eliminate taxes on the QCD portion of the RMD. If the RMD has already been completed or if there is no RMD (eg a surviving spouse before the deceased spouse would have reached age 72), the QCD will not be taxable but will not reduce taxes for the QCD year.