By Sarah Brenner, JD
Director of Retirement Education
Question:
My wife and I have a large disparity in IRA balances. It is about a 10 to 1 ratio. I would like to transfer a significant amount to her IRA.
Our brokerages say they do not allow these types of transfers. How do you manage to do that type of rollover?
Scott and Linda
Answer:
Hi Scott and Linda,
Unfortunately, you may not transfer your IRA funds to your spouse during your lifetime. That is not allowed under the IRA rules. The “I” in IRA stands for “individual.” The funds in it are solely for your benefit and, with very limited exceptions, cannot be transferred to anyone else during your lifetime. One exception is divorce, so if you are happily married that will not apply to you. You can name your spouse as your beneficiary though, and at your death she will inherit your IRA funds and can roll them over to her own IRA.
Question:
Good Day,
I just read Andy Ives’s Slott Report article entitled “Five Things You Need to Know about Qualified Charitable Distributions” and have a question he did not address in his article.
I inherited three IRAs from my mother and father who were both over age 70½ when they died. I know I must start taking required minimum distributions (RMDs) this year and I want to give this money to charity. So, instead of withdrawing in cash, having to pay ordinary income tax, and then making the donations, I would like to take these RMDs as qualified charitable distributions (QCDs). I am only 60 years old, but because the original owners were over age 70½ I am hoping this is doable.
Thank you kindly for your help.
Answer:
Some IRA beneficiaries can do QCDs from inherited IRAs. However, to be eligible, the beneficiary must be age 70½ or older. The age of the IRA owner does not matter. Because you are only age 60, you cannot do a QCD from the IRAs you have inherited.
If you have technical questions you would like to have answered, be sure to submit them to mailbag@irahelp.com, to be answered on an upcoming Slott Report Mailbag, published every Thursday.
https://irahelp.com/ira-rollovers-and-qualified-charitable-distributions-todays-slott-report-mailbag/