Charitable Donation from IRA 1099
For the IRA donation to a charity to qualify to be excluded from income, does the IRA provider have to code the 1099R a certain way, to prevent IRS questions? Prudential says they will send the IRA RMD wherever directed but will issue the usual taxable 1099R. What is the proper procedure at the front end?
Permalink Submitted by tomd37 on Thu, 2011-01-20 15:39
It is my understanding the custodian will issue the 1099-R as usual (code 7 in box 7 and include the QCD amount in box 2a along with the normal distribution. It will be up to the taxpayer to properly document the QCD excluded amount on line 15a of Form 1040 and report taxable amount(s) on line 15b.
Tom D.