Reply To: QCD as part of nonspousal inherited IRA distribution with estate tax deduction

Home Fairmark Forum Retirement Savings and Benefits QCD as part of nonspousal inherited IRA distribution with estate tax deduction Reply To: QCD as part of nonspousal inherited IRA distribution with estate tax deduction

#7978
Alan S.
Participant

I think I recall a prior thread a couple years back that questioned how this IRD deduction was being applied, but you wanted to continue the same calculation method you have used in the past, that has not been questioned by the IRS especially in view of the fact that the IRD will be exhausted very soon.

It is so late in the year and no RMDs are required, why don’t you wait until 2021 to do the QCD which will actually reduce your taxable RMD? Have you calculated your net recovery after taxes using this 2021 QCD scenario with/without a distribution this year?

Nonetheless, if you do a QCD this year, it seems logical to pro rate the IRD Deduction as you indicated, excluding the QCD portion.