You are correct that according to the instructions for the Retirement Savings Contribution Credit, "distributions from an inherited IRA by a nonspousal beneficiary" are excluded from the distributions that count against you.
However, the income from the distribution does still count towards her gross income. Does her income exceed the limit for her filing status?
- $66,000 if Married Filing Jointly
- $49,500 if Head of Household (with qualifying person)
- $33,000 if single, Married Filing Separately, or Qualifying Widow(er) with dependent child
@punkin19
