Making 2014 QCCs before the law is approved

12/31/14 is fast approaching. and I’m concerned. I’d like to make a QCC in advance of the date it’s approved (or not) for 2014. However, I want to do it correctly. I understand that my QCC should be requested before taking any other RMD distributions.
The check should be made payable to the charitable organization and mailed to me. Do I have to mail it to the organization before 12/31/14? If it doesn’t pass for 2014, the worst case scenario is I’ll deduct it as an itemized deduction. Should I be aware of anything else?
Barbara



Probably best to have your RMD processed as a QCD distribution (if the IRA custodian will do it). Depending on the eventual details in the legislation, it may well be OK if you cannot mail it before year end, but I would still try to do so if possible. Note that if the extender contains the same QCD provisions as in late 2012, you could just take your RMD in cash and write your own check to the charity before 1/31/2015 and report it all as a 2014 QCD. Whatever happens, it is unlikely that in the end you will not be able to treat the distrbution as a QCD, but you might have more complex tax reporting requirements to claim it.



Alan, I’m confused about the meaning of the last sentence in your reply: “Whatever happens…” I take this to mean that it is likely in the end I will be able to treat the distribution as a QCD (if legislation passes), but if I take the RMD in cash and write my own check to the charity before 1/31/15, I may have more complex tax reporting to claim it.  I’m all for making things easier rather than more complex.  Therefore, tomorrow I’ll have the RMD processed as a QCD distribution, have the IRA custodian make it payable to the charity, send it to me and I’ll mail to the charity by 12/31/14.  I presume in that case, I won’t have complex reporting requirements.  Then I’ll take my other RMDs.  



Yes, you interpreted by double negative statement correctly. Completing the entire process in 2014 means that you will not have to deal with treating a QCD actually made in 2015 as if it occurred in 2014. You would report the 2014 QCD in the same way you reported 2013 if you did one in 2013. And in the unlikely event that the QCD never gets extended at all, you would report the distribution as taxable income on your return, and then if you can you would deduct the donation made as an itemized deduction. Not likely to happen, but anything is possible with Congress. They should not even be dealing with this topic or any tax issues on a retroactive basis. The IRS hates this just as much as taxpayers.



Alan, thanks for the clarilfication.Barbara



In hopes that QCDs would be approved again for 2014, I took my first RMD from my Vanguard traditional IRA account in mid-October.  The checks were made payable to the qualified charitable organizations and mailed to my home address. I then forwared them on to the charities under a cover letter.  I then took the remainder of my RMD in mid-November. If the law is signed the amount of QCD and RMD will be properly reflected on lines 15a and 15b of IRS Form 1040.  If the law is not signed I will see if my itemized deductions might exceed our standard deduction (I seriously doubt it though).   Tom D.



Here is latest on the tax extender legislation which includes QCDs:  http://news.cchgroup.com/index.php/tax-headlines/federal-tax-headlines/tax-extenders-still-awaiting-senate-action/



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