Is a QCD eligible from a BDA IRA where decedent was over 70.5 and has an RMD but NSPS is under 70.5?

[MichaelL1 · Accepted solution]

No. 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.)

[dmertz]

To be eligible to make a QCD from an inherited/beneficiary traditional IRA, the beneficiary must be age 70½ or over at the time of the distribution.  The age of the decedent does not matter.

(Specifically, to make a QCD, the one for whom the IRA is maintained must be age 70½ or over at the time of the distribution.  In the case of a BDA IRA, the one for whom the IRA is maintained is the beneficiary.)

[operaflute]

I would dearly love to know what NSPS stands for. The answer appears not to exist on my version of the internet, although it DOES appear on my investment statement.

[dmertz]

My guess is that it is referring to a non-spouse beneficiary, but it's irrelevant with regard to making a QCD.  To make a QCD, the one for whom the IRA is maintained must be age 70½ or over.

[operaflute]

Yes, I was thinking it was "Non-Spouse Something Something."  My actual question is more curiosity about the abbreviation than the original posted question. This thread is one of the very few internet search hits I found that even includes NSPS in the context of investing/banking!

Thx!

[dmertz]

Perhaps just Non-SPouSe.

[operaflute]

*forehead slap*
And now I can sleep at night. 😆

Thank you!