DDB BN Posted February 5, 2020 Share Posted February 5, 2020 Can a charitable donation be made directly from an inherited IRA of a non-spouse beneficiary? Link to comment Share on other sites More sharing options...
Larry Starr Posted February 5, 2020 Share Posted February 5, 2020 1 hour ago, DDB BN said: Can a charitable donation be made directly from an inherited IRA of a non-spouse beneficiary? No. Any traditional IRA owner or beneficiary who is at least 70½ years old can use the qualified charitable distribution (QCD) rule to exempt their required minimum distributions (RMDs) from taxation. The age limit here applies to the exact date on which the IRA owner turns age 70½. For example, if an IRA owner turns 70 on February 15, he or she cannot make a QCD until August 15. Roth IRA owners are also allowed to use the QCD rule, although they will not see any benefit from doing so as their distributions are already tax-free. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com Link to comment Share on other sites More sharing options...
DDB BN Posted February 5, 2020 Author Share Posted February 5, 2020 Thank you. Link to comment Share on other sites More sharing options...
Appleby Posted February 5, 2020 Share Posted February 5, 2020 2 hours ago, Larry Starr said: No. Any traditional IRA owner or beneficiary who is at least 70½ years old can use the qualified charitable distribution (QCD) rule to exempt their required minimum distributions (RMDs) from taxation. The age limit here applies to the exact date on which the IRA owner turns age 70½. For example, if an IRA owner turns 70 on February 15, he or she cannot make a QCD until August 15. Roth IRA owners are also allowed to use the QCD rule, although they will not see any benefit from doing so as their distributions are already tax-free. Hi Larry, I agree with your explanation, with one minor qualification. A nonspouse beneficiary can make a QCD from an inherited IRA, as long as the beneficiary that holds that IRA is at least age 70 1/2 on the day the QCD is made. Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
Larry Starr Posted February 7, 2020 Share Posted February 7, 2020 On 2/5/2020 at 6:52 PM, Appleby said: Hi Larry, I agree with your explanation, with one minor qualification. A nonspouse beneficiary can make a QCD from an inherited IRA, as long as the beneficiary that holds that IRA is at least age 70 1/2 on the day the QCD is made. Agreed; QCDs can be made only from traditional IRAs and traditional inherited IRAs. If making a QCD from an inherited IRA, the client would still need to be age 70½ to qualify. Thanks for the clarification. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com Link to comment Share on other sites More sharing options...
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