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Seeking Guidance on inherited IRA, donor less than 70

  • 1.  Seeking Guidance on inherited IRA, donor less than 70

    Posted 01-05-2022 03:49 PM
    Hello,

    A donor in their late 60's gave a distribution from an IRA that they inherited from their parent who passed away this year. It is not from their account, it is from their deceased parent's account. The donor is the beneficiary. Our understanding is that because the donor is not yet 70.5 our standard language on IRA receipts is not appropriate because they can't really make a QCD.Is that indeed accurate or because it is an inherited IRA are there different rules? 

    Thank you!

    ------------------------------
    Carly Eichhorst
    Director of Advancement Operations and Strategy
    St Olaf College
    eichho1@stolaf.edu
    ------------------------------


  • 2.  RE: Seeking Guidance on inherited IRA, donor less than 70

    Posted 01-05-2022 03:57 PM
    You are correct.  Regardless of whether the IRA is inherited, you must still be 70.5 to qualify for a QCD.

    Your donor should seek tax advice from their CPA or the firm holding the IRA.  However, there are many references to this available online,  Here's one:


    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987