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Chademere Capital Insurance and Financial Services
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INHERITED IRAS AND SPOUSAL ROLLOVERS: TODAY’S SLOTT REPORT MAILBAG

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

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