IRA RMD and charity giving
Currently in RMD 80 yr old and before dying he does not take his RMD. The spouse who is the beneficiary wishes to give the $100,000 charitable gift from the $400,000 RMD before receiving it. Can she?
Currently in RMD 80 yr old and before dying he does not take his RMD. The spouse who is the beneficiary wishes to give the $100,000 charitable gift from the $400,000 RMD before receiving it. Can she?
Permalink Submitted by Alan - IRA critic on Mon, 2022-04-25 16:56
The surviving spouse can make the QCD either from her inherited IRA, or after she does the spousal rollover. But it is considered her QCD even though it is part of his year of death RMD. If she already did a QCD for the year of her own, it would reduce the 100k limit remaining to do a QCD with the inherited funds since she will have to use her own 100k QCD for any QCDs on the inherited money. And if she is not yet 70.5 she cannot do a QCD at all.
Permalink Submitted by MARK SCHERER on Mon, 2022-04-25 17:41
She took her RMD in January. Since it the $100k cannot come from his $400k then she cannot use it to reduce her already taken RMD, but it would be an additioanl distribuion for her?
Permalink Submitted by MARK SCHERER on Mon, 2022-04-25 19:06
Thanks for the answer.
Permalink Submitted by Alan - IRA critic on Mon, 2022-04-25 21:57
If deceased spouse passed this year prior to taking the 2022 RMD, the surviving spouse can first have the inherited IRA retitled in beneficiary form, then do a QCD from that account up to a maximum of 100k less any QCD she already did from her own IRA. That would keep her under the 100k QCD limit, but there is no way to donate 200k using his unused 100k QCD limit. If her own limit allows her to do a QCD from the inherited IRA, it will reduce the taxable income from his year of death RMD. Once that QCD and year of death RMD is done she can elect to assume ownership and combine with her own IRA if she wishes. I am assuming that she is at least 59.5.