[How do I send my Qualified Charitable Distribution to a charity]?

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TheCreeker
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[How do I send my Qualified Charitable Distribution to a charity]?

Post by TheCreeker » Sun Apr 22, 2018 5:56 am

[Moved into a stand-alone post from What is best strategy for taking RMD from VG IRA --admin LadyGeek]

I want my RMD QCD to be sent directly to the charity of my choice. Does Vanguard not do this?

RudyS
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by RudyS » Sun Apr 22, 2018 10:46 am

There was discussion on this in the original thread. You can request Vanguard to make the distribution, or if you have check writing in your IRA, you can write a check directly to the charity.

TheCreeker
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by TheCreeker » Mon Apr 23, 2018 6:58 am

Thank you so much for your reply.

I re-read the original thread and I see where the RMD/QCD issue was thoroughly discussed. When I first read the thread, my biggest concern was with writing the checks myself. I see now that this is the best option to make sure the donation is sent, and cashed, in a timely manner.

I will ask VG to send me a couple of QCD checks.

Thanks again for your help.

RudyS
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by RudyS » Mon Apr 23, 2018 8:20 am

TheCreeker wrote:
Mon Apr 23, 2018 6:58 am
Thank you so much for your reply.

I re-read the original thread and I see where the RMD/QCD issue was thoroughly discussed. When I first read the thread, my biggest concern was with writing the checks myself. I see now that this is the best option to make sure the donation is sent, and cashed, in a timely manner.

I will ask VG to send me a couple of QCD checks.

Thanks again for your help.
To clarify: Vanguard provides a book of "checks" which you write to whomever. Maybe for a QCD, maybe just a withdrawal. There are no "QCD checks" as such. I've done this for several years now. Also, while you can track the progress of your donation, you can't ensure that the charity will actually cash it timely. Best to do this well before year-end.

tomd37
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by tomd37 » Mon Apr 23, 2018 8:29 am

Creeker - I have been doing QCDs for the past nine years in those years when it was available under IRS rules. I just set up a telephone appointment with my VG representative, email him a list of the nine QCD recipients and amount for each the day before the call, and then he reviews that list with me on our recorded call and sends me the checks the next day or two. I make a copy of the checks and mail them to the charity under an explanatory cover letter (in memory of our son). Checks range from $250 to $2000. Not sure if VG has a lower dollar limit for a check.

Don't forget that your total QCD for any given year will be reflected on the 1099-R you receive from the investment firm and it is up to you to reflect the correct amounts on line 15 (a and b) on your 1040 form.
Tom D.

TheCreeker
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by TheCreeker » Mon Apr 23, 2018 9:30 am

Rudy and Tom,

Thanks very much for sharing your expertise with me.

Creeker

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Sheepdog
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by Sheepdog » Mon Apr 23, 2018 9:37 am

tomd37 wrote:
Mon Apr 23, 2018 8:29 am
Checks range from $250 to $2000. Not sure if VG has a lower dollar limit for a check.
In regards to lower check limits, I know of none when requested from Vanguard. I have had checks written from $50 to $5000. However, self written checks from my IRA checkbook are limited to a low of $250.
Jim
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

Engineer
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by Engineer » Mon Apr 23, 2018 9:48 am

To clarify, will a Vanguard 1099-R show the gross RMD (say 100,000) in Block 1 and in Block 2a, the RMD less the total of all QCDs (say 20,0000) or 80,000 in Block 2a?

Thanks

tomd37
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by tomd37 » Mon Apr 23, 2018 9:52 am

Gross amount will appear in boxes 1 and 2a
Tom D.

Engineer
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by Engineer » Mon Apr 23, 2018 9:59 am

Therefore the 1099-R does not reflect the QCD?

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Sheepdog
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by Sheepdog » Mon Apr 23, 2018 10:20 am

Engineer wrote:
Mon Apr 23, 2018 9:59 am
Therefore the 1099-R does not reflect the QCD?
The 1099R does not reflect the QCD. You reflect it yourself when you complete your 1040.
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

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CABob
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by CABob » Mon Apr 23, 2018 10:29 am

Engineer wrote:
Mon Apr 23, 2018 9:59 am
Therefore the 1099-R does not reflect the QCD?
The 1099-R includes the QCD but does not separately identify it as such. The number includes QCD and any withdrawals made sent to you or a fund you specify.
There was mention about check writing against a fund. It should be noted that check writing is only available from certain funds, generally money market and bond funds.
And there is a minimum amount of checks, I believe it is $250.
Bob

tomd37
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Re: [How do I send my Qualified Charitable Distribution to a charity]?

Post by tomd37 » Mon Apr 23, 2018 10:30 am

Sorry, lost my response to Engineer. Most tax software programs will ask questions about 1099-R distributions and if you answer those questions correctly the total distribution will reflect on line 15a and the taxable amount on line 15b with the abbreviation QCD just to the left of line 15b. If you do your return manually you will have to make those entries manually.

I volunteer in the free AARP Foundation Tax Counseling for the Elderly Tax-Aide program preparing returns for seniors. In that program it asks questions about non-taxable income and when I enter the information correctly it results in the action described above. I did my own return in the program and am looking at it as a type this.
Tom D.

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