Lots of people do it this way. The key is that the check must be drawn on the IRA, not my personal account. In my opinion, writing the check that VG gives me is “contacting” my IRA trustee. The advice to not wait too long applies to either method as the check needs to be cashed by year-end.IRS says, IRA owners must contact their IRA trustee to make a QCD. Doesn't sound like you can write the QCD check yourself.My plan is to set up check writing from my VG IRA and then do it myself. Much easier as long as the amount is >$250 minimum.While I haven't executed a QCD yet, I have looked at setting up the transaction with my Vanguard IRA. The only option I saw to make a QCD is they mail you a check made payable to the charity.Since you said it was easy, I assumed from your note that your IRA custodian (who from your response I understand is Vanguard) mails the checks directly to the charity. And if that is the case, that would be a plus for moving at least part of my IRA to them. I'm about a year out from 70 1/2, so I'm starting to think through the mechanics of moving my contributions from DAF-based to QCD-based.
How to set up a QCD
Any IRA owner who wishes to make a QCD for 2023 should contact their IRA trustee soon so the trustee will have time to complete the transaction before the end of the year.
Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these distributions become tax-free as long as they're paid directly from the IRA to an eligible charitable organization.
From farther down in the IRS document…
“ QCDs must be made directly by the trustee of the IRA to the charity. An IRA distribution, such as an electronic payment made directly to the IRA owner, does not count as a QCD. Likewise, a check made payable to the IRA owner is not a QCD.”
The check drawn on the IRA account is made directly to the charity and does not flow through my outside IRA accounts.
Statistics: Posted by BigJohn — Fri Jun 28, 2024 8:10 am — Replies 31 — Views 2103