Charitable RMD contribtuion
Hello. Client donated RMD to charity. Went through proper channel with IRA custodian. They sent check direct to charity. Client received 1099 with Code 7. Custodian says that Rule 590 requires the 1099 to be issued with the client’s SS#. Is that true?
Permalink Submitted by Alan - IRA critic on Mon, 2017-02-06 18:52
Yes, that is correct. Because the QCD was not permanent for so long (it is now), the IRS never authorized a unique Box 7 distribution code for the 1099R. The client must report this on the 1040 very similar to the way an IRA rollover is reported. The gross QCD goes on line 15a, 0 on 15b, and “QCD” entered next to 15b. This will result in the QCD not being included in AGI, which is the desired result.
Permalink Submitted by Julie Brangenberg on Mon, 2017-02-06 19:19
Thanks. I truly appreciate your service!