A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Asset Preservation Capital, LTD, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone call.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Asset Preservation Capital, LTD
(248) 649-4759

By Sarah Brenner, JD
Director of Retirement Education

Question:

If the owner of an inherited IRA was required to take RMDs from the IRA prior to his death, can a beneficiary who is younger than age 70 1/2 request QCDs from the inherited IRA?

Note: We understand the beneficiary is required to take RMDs based on the deceased owner’s life expectancy because the new owner inherited the IRA in 2019.

Thank you,

Bruce

Answer:

Hi Bruce,

This is an interesting question. A beneficiary of an inherited IRA can do a QCD and use the QCD to satisfy the RMD for the year. However, to be eligible the beneficiary must be age 70 ½ or older. It is the beneficiary’s age that matters. The age of the IRA owner does not. Even if the IRA owner was age 70 ½ or older at death, that would not make the beneficiary eligible for a QCD if the beneficiary was younger than 70 ½.

Question:

Upon death of a spouse, can the IRA of the deceased spouse be rolled over to the existing IRA of the beneficiary spouse, or must it be transferred to a new IRA account of the spouse beneficiary?

Sid

Answer:

Hi Sid,

A spousal rollover can be done to an existing IRA in the spouse beneficiary’s own name, or a new IRA can be set up. Either way will work.

https://www.irahelp.com/slottreport/inherited-iras-and-spousal-rollovers-todays-slott-report-mailbag