Charles Schwab allows IRA holders two alternatives for QCD payments as follows:
1. Deliver/send a check direct to a qualified charity from Schwab.
2. Make the check payable to the charity but mail it to the IRA owner to be delivered to the charity.
My Question: Does the IRS consider checks delivered to a charity by the IRA holder a QCD assuming the check is made payable to the charity?
Thank you.
Either method satisfies the statutory requirement that the QCD distribution be paid to the charity by the IRA custodian. A check made payable to the charity is not negotiable by you, it's only negotiable by the charity.
Under IRS Notice 2007-7, Q&A-41, it is permitted for the check to be mailed to the IRA owner, as long as the check is payable to the charity, but a check payable to the IRA owner that is merely endorsed over to the charity does not satisfy the QCD requirements.
At this late date you really should have them issue & mail the check directly to the charity ... you don't have time to spare if the check mailed to you is lost in the mail or you fail to get it to the charity on time.
The QCD is for 2018 because I will not be itemizing under the new tax law. The information was helpful. Thank you.