Inherited IRA RMD to charity
Hi Terry,
I inherited a traditional IRA from my Dad who passed away this year at age 86. I am 62. Can I take the RMD and donate it directly to charity to avoid taxes? If so, how is that done?
Thanks,
Terry Says
That was a tough one to answer. Here’s what I found at Fidelity:
A QCD is reported as a normal distribution on IRS Form 1099-R for any non-Inherited IRAs.
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For Inherited IRAs or Inherited Roth IRAs, the QCD will be reported as a death distribution.
Itemization is not required to make a QCD. While the QCD amount is not taxed, you may not then claim the distribution as a charitable tax deduction.
A QCD is not subject to withholding. State tax rules may vary, so for guidance, consult a tax advisor.
