IRA RMD Deceased Client – QCD Possible?
Client was 77 and his RMD for the year was $96,000. He had taken $45,000 prior to his death in April 2024. His remaining RMD to be taken is $51,000. The IRA has rolled to his spouses IRA who is 72 this year.
Can she use part of the $51,000 as a QCD to satisfy his remaining IRA, or is she not allowed to do a QCD since it is satisfying her deceased husbands RMD?
Permalink Submitted by Alan - IRA critic on Fri, 2024-08-16 17:20
She can do the QCD using her own QCD limit for the year. While she now owns the IRA, she could also have done a QCD if it was still a beneficiary IRA. Based on the estimated account balance, because she will be filing single next year and will have to take her own RMD, she might want to save some of the QCD donation for 2025 because single tax rates are higher than joint.
Permalink Submitted by Brian Matter on Fri, 2024-08-16 17:41
Thanks! So just to be clear – because he didn’t take all of his RMD before his death and she now has to satisfy the remaining amount (even though she herself doesn’t have an RMD), the wife taking a QCD will help to satisfy the amount of his remaining RMD?
Permalink Submitted by Alan - IRA critic on Fri, 2024-08-16 22:10
Yes. While an RMD is not required to do a QCD, in this case she must complete his year of death RMD and can use a QCD to reduce the taxable amount of that RMD.