2) Is it correct that a charity would not have to pay tax on a bequest from a traditional IRA? If so, it would imply that this should be the first place to leave money to a charity from.
Thanks, no I wasn't confusing the QCD. I was thinking about how to allocate my own funds after death, as I have no spouse nor children and more than I care to leave to my two nephews. (Yes, I know lots of people would like to have that problem.) But your answer was very helpful, as I thought the QCD kicked in at age 59 1/2. I'm between 59 1/2 and 70 1/2.
I thought you were right about the RMD, and that it was odd that Fidelity would give me a single amount. Since both of my brothers are in an identical situation, I'll share the information with them.
You can make a QCD from an Inherited IRA but to make a QCD you need to be at least 70.5 years old and meet all the other QCD requirements.
The method for calculating RMDs for Inherited IRAs is in Publication
590-B. Since your custodian's RMD advice appears to be incorrect, you should calculate the RMDs yourself.Several estate lawyers I have talked to recommend leaving taxable IRAs to charities when you wish to make charitable contributions at your death. The charity doesn't pay taxes and you can leave your other heirs cash or assets that have a stepped up cost basis.
Fidelity shows you the total of all your RMDs on your portfolio summary page when you log in. But the Retirement Distribution Center shows you all the details -- the individual RMD for each account, and how each RMD is calculated.
To get to the Retirement Distribution Center, below the total on the portfolio summary page click the link that says "learn more about RMDs and take a distribution." Or click Accounts & Trade at the top left, then Retirement Distributions.
The Retirement Distribution Center also shows the total of all the RMDs at the top, but scroll down a bit and you will see a detailed list of the RMD for each individual account. If you click on an account, it will show you the calculation of the RMD for that account.
Also, on the portfolio summary page, below the total RMD, it says the following: "Note: If you have inherited or Fidelity Retirement Plan accounts, the IRS requires you take distributions separately from those accounts."
Bob Sandler
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