Inherited IRAs and Qualified Charitable Distributions: Today's Slott Report Mailbag
By Sarah Brenner, JD
Director of Retirement Education
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My mother passed away in May 2019, and I inherited her IRA. She had not completed her RMD for 2019, so I did that. In 2020, I began my RMDs based on the Single Life Table for Inherited IRAs.
Since I inherited prior to January 1, 2020, does anything in the SECURE Act apply to my inherited IRA? Will I be able to continue the RMDs per the Table or will I need to make sure I empty it completely within 10 years of when I inherited it?
Your inherited IRA is grandfathered because your mother passed away before the SECURE Act was effective. You can continue stretching RMDs over your life expectancy. However, any successor beneficiary that you name on the inherited IRA would be subject to the SECURE Act. Your successor beneficiary could not continue the stretch. The successor would instead be subject to the 10-year rule and would need to empty the account within 10 years of your death.
My 72nd birthday is 9/17/2022, and I would like to do a qualified charitable distribution (QCD) before that date to offset either all or most of my first RMD amount for the year. Do I need to wait until that date or later to do the QCD, or can I do the QCD earlier in the year before I turn 72?
The rules for qualified charitable distributions are confusing. When the age to start taking required minimum distributions was raised from 70 ½ to 72, the age requirement for a QCD remained at age 70 ½. The rules require you to actually be 70 ½ at the time the QCD is done. You cannot reach that age later in the year. Since you are already past age 70 ½, you are eligible for a QCD right now.
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