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jimspore
New Member

Can I transfer my IRA to my wife (20 yrs younger) and defer taking the RMD, or must I take the RMD, pay the tax and reinvest?

I have just reached 70 and I have just understood I must take a RMD.

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Accepted Solutions
DanO
New Member

Can I transfer my IRA to my wife (20 yrs younger) and defer taking the RMD, or must I take the RMD, pay the tax and reinvest?

No, you cannot transfer an IRA to your spouse, it is an "individual retirement account" that only one person can own, and can't be transferred if you desire to.

You would need to take the RMD and reinvest, or you could make a Qualified Charitable Distribution (CQD) to a charitable organization to avoid the taxable income and profit an organization that you back, and transfer the RMD directly.  This can be done from an IRA and not a 401k.  

If interested in this, these are the guidelines:

  • You must be 70½ or older to be eligible to make a QCD.
  • QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
  • The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
  • For a QCD to count towards your current year's RMD, the funds must come out of your IRA by your RMD deadline, generally December 31.

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1 Reply
DanO
New Member

Can I transfer my IRA to my wife (20 yrs younger) and defer taking the RMD, or must I take the RMD, pay the tax and reinvest?

No, you cannot transfer an IRA to your spouse, it is an "individual retirement account" that only one person can own, and can't be transferred if you desire to.

You would need to take the RMD and reinvest, or you could make a Qualified Charitable Distribution (CQD) to a charitable organization to avoid the taxable income and profit an organization that you back, and transfer the RMD directly.  This can be done from an IRA and not a 401k.  

If interested in this, these are the guidelines:

  • You must be 70½ or older to be eligible to make a QCD.
  • QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
  • The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
  • For a QCD to count towards your current year's RMD, the funds must come out of your IRA by your RMD deadline, generally December 31.
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