Preferred QCD Method
If this is inappropriate for this forum, please excuse.
In order to have a successful QCD from my TIRA, apparently I can either ask IRA provider to send check directly to
designated charity (charities), or I can have checks (made out to charity) sent to me, and I would then forward to charity.
Do you see a preferred method here? And Why?
AlanD
Permalink Submitted by Alan - IRA critic on Sun, 2020-05-31 16:55
I think you will find that your IRA custodian will only mail the QCD to you for delivery to the charity and of course this is fine with the IRS. You can then either forward to the charity of hand deliver the check and get your required acknowledgement from the charity at the same time. Also, some custodians offer IRA check writing in which you make out your own QCD checks. This might be preferable for those who would issue several such checks a year. If the IRA custodian writes the check they will record a distribution on that day, but if you have check writing, the custodian is not aware of the check issue until it is negotiated by the charity and paid by the custodian’s bank. So the timing issues differ somewhat, and either way it is best to have your QCDs wrapped up by the start of December. When RMDs resume next year, you will have to again coordinate your QCDs with your RMD to make sure they offset the taxable RMD income.