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My IRA custodian is Schwab. They suggested that I get a checkbook for the my IRA account, and write my IRA account checks to be payable directly to the charities. Qualifies as QCD
Form the beginning I posted that one should check with the IRA trustee for instructions to see if anything more needs to be done other than writing the check to the charity. If you have an RMD then they may need to at least know about it so they complete the 1099-R properly.
Whether to check is written to a charity or not will not impact the 1099-R.
The 1099-R contains no information regarding QCDs.
The main thing to keep in mind is that the check should be written and sent to the
charity 2-4 weeks before the end of the year. Otherwise,
the distribution may be reported in the year after the check was written.
I have several clients who write IRA checks and have had no problem with them
not being reported as a distribution on the 1099-R.
After reading all of this, the important question for me is will TT ask the appropriate questions and then generate the correct form 8606?
Yes it asks the correct questions if you go slow and read the screens carefully ... remember the interview is set up on a "tree branch " system so depending on how you answer a question now will dictate the questions it will ask going forward. For instance if you did not click on the "I own a Home" button it will not automatically bring up any home ownership questions. Not that you cannot get to them later yourself but the program will not walk you down that path automatically.
Just keep in mind that if your IRA custodian makes a distribution to the charity on your behalf, the amount will appear on the 1099-R for the year they write the check. If you write a check to the charity out of an IRA checking account, it will appear on the 1099-R of the year the charity cashes the check.
This is particularly important if the charitable donation is part of the required minimum distribution (RMD) and you're making the donation at the end of the year.
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