Can QCD be for specific fund within charity?
Best Answer
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Hello,
That is a good question. You should be able to direct the fund for a QCD by adding directions when the QCD is made from your retirement account. However, I recommend that you speak with your church to see how you would make that designation so it is directed to the desired fund.
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Answers
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Thanks, MatthewD. I can work the church. My concern was that IRS would consider that "control" and thus disallow the QCD. I couldn't find anything in IRS documents. From your response, I take it IRS allows specific designation for the funds so long as I do not receive personal benefit.
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Generally, most churches provide year-end statements that they will use the fund at their own discretion. So you don't actually have much control how they are used for missionary, school, etc. Good luck.
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I understand I have to ask the bank to make the QCD IRA direct to the institution. First, what type of document should I expect to receive, 1099- what? Second, the document is issued by the bank?
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Expect to get a form 1099-R. It is a retirement distribution and when you enter that form, you are asked how much of it was a QCD, which is subtracted from the total.
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Just to expand on MathewD's answer. When you enter data from the 1099-R, you do not subtract the QCD from the total on the 1099-R. The subtraction is from taxable income on 1040 Line 4a. In addition to the 1099-R, you will receive documentation from the charity of the date, amount, and that you did not receive anything in return for the contribution.
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