Reply To: QCD from inherited IRA

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Alan S.

Technically, a QCD from a Roth would be limited to gains in a NQ Roth IRA, which is a Roth that has not attained both 5 years and age 59.5. Practically, I have not heard of anyone doing a QCD from a Roth IRA which does not have taxable RMDs such that a QCD would offset the RMD taxes. Inherited Roth IRAs also have mostly met the 5 year holding period, and even if not yet met, basis would be coming out first, and not eligible for QCDs.

If the Roth 401k was qualified when rolled over, the Roth IRA gains would be limited to those that were generated in the Roth IRA, but if the Roth 401k was not qualified due to not having been held 5 years at the time of the rollover, the gains in both the Roth 401k and the Roth IRA would be eligible for QCDs.