QCD via monthly ACH?

Taxpayer wishes to setup recurring monthly distributions via ACH from his IRA directly to a charitable organization. Are there any issues to be aware of with this structure as opposed to periodically writing a check against the IRA and mailing it to the charitable organization? Any reason the recurring ACH would not qualify as a QCD?

Thanks.



I have not heard of anyone using this method. First thing to do is check if the IRA custodian allows ACH from an IRA.  If they do, it should be a valid QCD in the eyes of the IRS. However, if taxpayer is subject to RMDs, all QCDs should be completed not later than when the RMD is completed, so the taxpayer should probably wrap up the ACHs in November.



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