Charitable Donations from an Inherited IRA

Submitted by Arek Puzia on Fri, 2023-07-28 16:50

I just want to confirm that there is no way to do a charitable donation directly out of an inherited IRA? The only way would be to disclaim the IRA when it is first being inherited and have it go to a charity? But once it’s been inherited as an Inherited Beneficiary IRA, then the funds have to be removed, taxes paid, and then the remainder can be donated or whatever can be done with it? But no way around that? Thank you!



Submitted by Alan - IRA critic on Fri, 2023-07-28 17:29

  • An IRA beneficiary can do a QCD subject to the same QCD rules as an IRA owner. That includes the requirement that the beneficiary must have reached 70.5.
  • If an IRA beneficiary disclaims, the IRA is then inherited by the contigent beneficiary.  If the charity was not named by the IRA owner as a contingent beneficiary, the charity can only receive the IRA indirectly. For example, if no contingent beneficiary is named and the IRA agreement default beneficiary is the owner’s estate, the IRA goes to the estate. If a charity is named as beneficiary in the owner’s will, then the charity may end up with the funds indirectly. In other words, a disclaiming beneficiary is not able to redirect where the IRA goes. The disclaimer simply treats the named beneficiary as having pre deceased the owner.

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