donheff
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I would like to start making some QCDs since I no longer itemize and am making the contributions anyway. From what I have read the distributions must be less than or equal to your RMD amount and must go directly from the IRA custodian to the charity. It looks like it is too late to take advantage of QCDs this year because only I have RMDS and my tax deferred is in the TSP where I can't do the direct distributions.
My plan is to roll over a portion of the TSP to a tIRA before the end of the year and start QCDs next year. I am planning to use Schwab unless someone is aware of a better place for this purpose. Schwab will enable direct distributions (which would only make sense for largish donations) and also will attach check writing to the account which I believe will also qualify as a direct distribution. Schwab told me they will report all of the distributions as normal distributions on a 1099 becuase IRS provides them with o way to distinguishe QCDs from regular distributions. I will have to deal with that on my tax filing.
I'm hoping some of you are doing this already and can help me avoid any gotchas with IRS. First, are checks written to charities from the account OK for QCD's? I would anticipate a few moderate sized checks and a lot of little ones. Second, is it easy to specify that some of the RMDs went to charities when filing? I have been using Turbo Tax and hope they have screens that ask the question and make the reduction in taxable income. Any additional thoughts or considerations?
Thanks in advance for any help.
My plan is to roll over a portion of the TSP to a tIRA before the end of the year and start QCDs next year. I am planning to use Schwab unless someone is aware of a better place for this purpose. Schwab will enable direct distributions (which would only make sense for largish donations) and also will attach check writing to the account which I believe will also qualify as a direct distribution. Schwab told me they will report all of the distributions as normal distributions on a 1099 becuase IRS provides them with o way to distinguishe QCDs from regular distributions. I will have to deal with that on my tax filing.
I'm hoping some of you are doing this already and can help me avoid any gotchas with IRS. First, are checks written to charities from the account OK for QCD's? I would anticipate a few moderate sized checks and a lot of little ones. Second, is it easy to specify that some of the RMDs went to charities when filing? I have been using Turbo Tax and hope they have screens that ask the question and make the reduction in taxable income. Any additional thoughts or considerations?
Thanks in advance for any help.