QCD distribution via Schwab IRA brokerage account
I’ve established a checking account within my Schwab IRA account to supposedly make it easier to do QCD’s to multiple 501 c3 charitable organizations. Assuming that doing so makes the donation a direct distribution from my IRA to any qualified charity.
Am I understanding this process correctly and doing it in the proper manner for QCD’s ? Thank you …
Permalink Submitted by Alan - IRA critic on Fri, 2022-04-01 16:52
Yes, a check written by you on your IRA account to a qualified charity is treated as a QCD. However, when you write a check instead of Schwab, Schwab does not recognize your distribution for RMD purposes until the check is cashed by the charity . Accordingly, for any QCDs you write starting about November, you should be clear with the charity that they need to cash the check in short order. And the more checks you write, the more work it will be to monitor this situation.