403(b) dist. vs. of ira distribution for charitable gift
Company sent 403 (b) distribution out instead of Ira distibution for 2007, individual will not get tax break for for charitable RMD gift. Anything that can be done to help the situation?
Company sent 403 (b) distribution out instead of Ira distibution for 2007, individual will not get tax break for for charitable RMD gift. Anything that can be done to help the situation?
Permalink Submitted by Alan Spross on Mon, 2008-03-10 16:14
You mean the same company administers both your 403b and your IRA? Who is the check made out to?
It is hard to imagine this happening because the QCD (qualified charitable distribution) does not apply to other than IRAs.
Permalink Submitted by Gene Wehrheim on Mon, 2008-03-10 17:12
The company only had a 403(b) account. The form used for the distribution was an Ira form. The company sent the check to the requested church.
Permalink Submitted by Alan Spross on Mon, 2008-03-10 19:41
The IRS is obviously going to consider this taxable, because a 403b plan cannot process a QCD. If he already has itemized deductions up to the standard deduction limit, he can probably allay most of the damage. IF he is RMD age, at least there is no early withdrawal penalty.
Depending on how this distribution originated, he may have some cause of action against the plan administrator.