QCD Distribution Checks

Submitted by Vern Kuennen on Wed, 2023-02-15 15:10

Last year my annuity company mis-mailed ( wrong checks in wrong envelopes) to two of my four QCD Recipients. It took me several weeks to getthings corrected. They messed up the the previous year also.
Can I have the annuity company issue the checks as always (payable to the charitable entities) but send them to me for mailing to the charities? I want to avoid the possibility/probability they will screw it up again.
If the answer is yes please provide me with the appropriate IRS document etc. that I can give to my annuity company.
Thanks for your help.



Submitted by Alan - IRA critic on Wed, 2023-02-15 15:24

Most IRA custodians do mail QCD checks to the taxpayer for delivery to the charity. Taxpayer should make a copy of the check and be sure the charity provides a written acknowledgement. You can certainly ask them to send the checks to you but if they do not you might consider transferring this IRA to a mainstream IRA custodian, Another reason to consider a transfer to a non bank or insurance custodian is that things will be easier for your beneficiaries. I would recommend either Schwab, Fidelity, or Vanguard.

Submitted by Vern Kuennen on Wed, 2023-02-15 23:11

Not possible to move. This is a lifetime income benefit annuity with Midland. They are telling me their interpretation of the QCD regulations requires them to send the checks to the charity rather than to me for mailing. I need something to show they are wrong in their interpretation of the mailing requirement.Thanks

Submitted by Alan - IRA critic on Thu, 2023-02-16 00:05

  • The following link is to IRS Notice 2007-7. See QA 41, which clarifies that the QCD is treated as being made directly to the charity if it is delived through the taxpayer.
  • Microsoft Word – N-07-07.doc (irs.gov)
  • I doubt if they will change their policy even with this documentation that mailing the QCD check to you is clearly allowed. But it’s worth a try. Too bad you don’t have a non annuity IRA elsewhere to fund your QCDs.

Submitted by Jay Wiedwald on Thu, 2023-02-16 07:31

This likely won’t be helpful to  partnersvk-yahoo.com but one of the options that Fidelity offers is the ability to write checks on an IRA account. I use that capability solely for QCD contributions so can keep close track. As usual, just need to be sure that checks are sent in time to be cashed by year end or the money may come out of the account in the wrong year.

Submitted by John Mlinar on Sat, 2023-02-18 00:14

Hello Alan, regarding your citing of IRS Notice 2007-7:  I take my RMD lump sum in January in order to spare my beneficiaries the hassle of calculating this amount if I should pass during that year.  Is there anyway I can use those funds to contribute to charities (15-20) throughout  the year?  I don’t think my present custodian allows check writing  but apparently  some do.  Thanks. 

Submitted by Alan - IRA critic on Sat, 2023-02-18 02:02

Yes, you can do QCDs, but you must complete your QCDs, but any QCD distributed after you have completed your RMD will not offset the taxes on your RMD. For example, you have apparently already completed your RMD for 2023 but perhaps not completed your QCDs. In that case, the future QCDs this year will not be taxable, but neither will they reduce the taxes due on your RMD. Unless you planned to have your QCDs total more than your RMDs to begin with you would have to modify your plans for 2024 to complete your QCDs earlier or complete your RMD later. Another question is whether your IRA custodian is willing to issue as many as 20 QCD checks. If not you might need to divide your QCDs among fewer charities. You can always ask your custodian if they offer checkwriting on your IRA.

Add new comment

Log in or register to post comments