Qualified Charitable Distribution from an inherited IRA

8 replies
98 views

Unlike my traditional IRA , Turbo Tax does not ask if any of my spouse's inherited IRA RMD was a QCD. It is treated as taxable income. The interview also thinks my spouse is 701/2 (confirmed that Turbo Tax has the correct birth date). I confirmed the 1099-R info is correct in the program. Help

dmertzAnswer

Level 15

Expert Reviewed

thanks for the reply. I'll have to a little research. I thought since my spouse is required to take a RMD starting the year after the death of the original IRA owner(no matter the age of the person inheriting the IRA or the decease); then we also could could make a Qualified Charitable Distribution.

Whether or not the distribution is an RMD is not a factor in determining whether or not a distribution qualifies as a QCD. The requirements to be a QCD are:

the distribution is from the pre-tax money in the IRA,
the one for whom the IRA is maintained is age 70½ or over,
the distribution is sent directly to the charity from the IRA,
the charitable contribution would otherwise qualify to be reported on Schedule A,
the QCD limit of $100,000 per year is not exceeded, and
with the changes in the tax code in the SECURE Act, the individual must subtract out the amount of deductible traditional IRA contributions made after age 70½ to their own IRA. (This particular requirement get's a bit weird when the QCD is being made from an inherited IRA, but does not apply in this case.)

§ 408(d)(8)(B)(ii)

which is made on or after the date that the individual for whose benefit the plan is maintained has attained age 70½

https://www.law.cornell.edu/uscode/text/26/408

macuser_22

Alumni - Champ

What code is in the 1099-R box 7?

Is the IRA/SEP/SIMPLE box checked?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

rsteveAuthor

Level 2

The 1099-R code is "4" in box 7 and the "IRA/SEP/SIMPLE" box is marked.

macuser_22

Alumni - Champ

Was the owner of the IRA (the deceased person) born before July 1, 1947?

I do not believe that a QCD can be made from an inherited IRA if the owner of that IRA would have been prohibited from doing so if still alive because the age requirement has not been met even though the benificuary is over 70 1/2.

[ @dmertz - is that correct]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**