Qcd payments

Submitted by Maria Difalco on Thu, 2017-01-19 14:11

Hello Alan–happy new year. Back again needing clarification of present qcd distribution. Once again I am seeing that distribution from annuity company may be mailed directly to donor—-while some sources insist distribution must be sent directly to charity. Since starting qcd I have always had distribution mailed to me. Thanks for your help

MBD



Submitted by Alan - IRA critic on Thu, 2017-01-19 17:12

Either way is OK as long as the check is made payable to the charity. Here is QA 41 from Notice 2007-7 clarifying that the check may be sent to the owner:

Q-41.  Is a check from an IRA made payable to a charitable organization described in § 408(d)(8) and delivered by the IRA owner to the charitable organization a direct payment to such organization?   A-41.  Yes.  If a check from an IRA is made payable to a charitable organization described in § 408(d)(8) and delivered by the IRA owner to the charitable organization, the payment to the charitable organization will be considered a direct payment by the IRA trustee to the charitable organization for purposes of § 408(d)(8)(B)(i).  

Submitted by Kregg Walisiak on Tue, 2017-07-11 17:21

 I read a recent article of yours (linkedin) that referenced a QCD from an annuity will not qualify.

  • Split interest gifts, charitable gift annuities, donor advised funds and private grant making foundations do not qualify. The QCD provision is basically only for a direct gift from the IRA to a charity, with no conduit in between.

does a QDC from an individually owned annuity qualify?

Submitted by Alan - IRA critic on Tue, 2017-07-11 17:38

A QCD can only be distributed from an IRA, so an IRA annuity would qualify but not a non qualified annuity.

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