Postmortem Spouse QCD
My husband died in April 2024. His IRA was transferred to me as his spouse and only beneficiary a month later. Shortly after that I made a $70K QCD from that IRA. I also made one later in the year for $30K from my separate IRA at another brokerage. I will be filing a joint return for 2024 for our combined incomes. Does the $70K QCD from his IRA, made after it was transferred to me, count against my $100K limit, or is it attributable to my husband?
Permalink Submitted by Alan - IRA critic on Mon, 2024-08-12 18:39
It was made by you as a beneficiary, but you are still under the QCD maximum (105k) for the year. I assume that you are at least 70.5 because you did a QCD from your own IRA, and that age requirement also applies to inherited IRA QCDs.
To be clear, because your husband did not make a QCD before passing, you are limited to your own 105k limit and cannot use any of his 105k limit.
A related issue is that if your husband was subject to RMDs and did not complete his 2024 RMD before passing, you are responsible for doing so. Those QCDs therefore might have also satisfied his 2024 RMD.
Would need to know both of your ages to be sure that there is no downside to your assuming ownership of the inherited IRA, but inherited IRA RMDs once they start are going to be considerably higher than from an IRA you own.
Permalink Submitted by Frances Sargent on Wed, 2024-08-14 17:54
Thank you for the reply. My husband was 81, and had withdrawn his 2024 RMD before passing. The $70K QCD from the account I inherited from him left a balance of just $400 in his traditional IRA going forward. I’m 74, and the $30K QCD from my separate IRA satisfied my RMD requirement for 2024. I really appreciate the clarification and the head up about the $105K individual limit. Thanks again!