Can anyone help me find a solution to my QCD problem?

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tomd37
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Joined: Thu Mar 01, 2007 9:39 pm
Location: Middle Tennessee

Re: Can anyone help me find a solution to my QCD problem?

Post by tomd37 »

PrivateID
It is my understanding that some, but not all, Vanguard IRA accounts have check writing ability and that you must have arranged such with Vanguard and have received checks to write against that account. Have you set up such an account and do you have checks to write against the IRA account? It might be that the account to write checks against might have to be a money market account in your IRA account.

You might consider calling Vanguard again and talking with another person, possibly higher up in the chain.
Tom D.
drzzzzz
Posts: 1047
Joined: Sat Sep 22, 2012 9:56 pm

Re: Can anyone help me find a solution to my QCD problem?

Post by drzzzzz »

Oicuryy wrote: Wed Sep 22, 2021 2:46 pm Vanguard is giving you their conservative interpretation of the phrase "a check from an IRA" in Q&A 41 of IRS Notice 2007-7. For a less conservative interpretation see
https://www.irahelp.com/forum-post/3394 ... -checkbook

Ron
Many of us think Vanguard is taking a very conservative view on this particular topic and you might want to review what was posted higher up regarding Question 41 and the response since it is from what I recall was an IRS question and answer session to clarify these issues. Ed Slott (who many view as an IRA expert) also has posted that this appears OK and my guess is that a google search will find similar responses. Fidelity has no problems with this and Schwab is also going to be adding checkwriting to an IRA of ours. You should however do whatever you are most comfortable doing.
sport
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Location: Cleveland, OH

Re: Can anyone help me find a solution to my QCD problem?

Post by sport »

privateID wrote: Thu Sep 23, 2021 4:29 pm It seems that everyone here agrees that simply writing a check against the IRA account is sufficient to be eligible as a QCD. I therefore repeat the same question - Why did the Vanguard representative on the phone specifically say that I couldn't do it like that?
The Vanguard rep I spoke to recently said that the IRS has not given clear guidance on this matter, so I should consider that when deciding to use such checks for QCDs. It seems that different Vanguard reps are providing different information.
RudyS
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Joined: Tue Oct 27, 2015 10:11 am

Re: Can anyone help me find a solution to my QCD problem?

Post by RudyS »

sport wrote: Thu Sep 23, 2021 5:03 pm
privateID wrote: Thu Sep 23, 2021 4:29 pm It seems that everyone here agrees that simply writing a check against the IRA account is sufficient to be eligible as a QCD. I therefore repeat the same question - Why did the Vanguard representative on the phone specifically say that I couldn't do it like that?
The Vanguard rep I spoke to recently said that the IRS has not given clear guidance on this matter, so I should consider that when deciding to use such checks for QCDs. It seems that different Vanguard reps are providing different information.
Sport, do you not have confidence in the quote you provided yesterday, earlier in this thread? I've been using my VG checkbook for this for years now.
sport wrote: Wed Sep 22, 2021 3:03 pm
Oicuryy wrote: Wed Sep 22, 2021 2:46 pm Vanguard is giving you their conservative interpretation of the phrase "a check from an IRA" in Q&A 41 of IRS Notice 2007-7. For a less conservative interpretation see
https://www.irahelp.com/forum-post/3394 ... -checkbook

Ron
The answer to question 41 is:

A-41. Yes. If a check from an IRA is made payable to a charitable organization
described in § 408(d)(8) and delivered by the IRA owner to the charitable organization,
the payment to the charitable organization will be considered a direct payment by the
IRA trustee to the charitable organization for purposes of § 408(d)(8)(B)(i).

It does not state who has to write that check. A "check from an IRA" can be written by the IRA custodian, or the IRA account holder.
IRS Pub. 590-B has similar wording about payment going directly from the IRA to the charity.
sport
Posts: 12084
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: Can anyone help me find a solution to my QCD problem?

Post by sport »

RudyS wrote: Thu Sep 23, 2021 9:51 pm
sport wrote: Thu Sep 23, 2021 5:03 pm
privateID wrote: Thu Sep 23, 2021 4:29 pm It seems that everyone here agrees that simply writing a check against the IRA account is sufficient to be eligible as a QCD. I therefore repeat the same question - Why did the Vanguard representative on the phone specifically say that I couldn't do it like that?
The Vanguard rep I spoke to recently said that the IRS has not given clear guidance on this matter, so I should consider that when deciding to use such checks for QCDs. It seems that different Vanguard reps are providing different information.
Sport, do you not have confidence in the quote you provided yesterday, earlier in this thread? I've been using my VG checkbook for this for years now.
sport wrote: Wed Sep 22, 2021 3:03 pm
Oicuryy wrote: Wed Sep 22, 2021 2:46 pm Vanguard is giving you their conservative interpretation of the phrase "a check from an IRA" in Q&A 41 of IRS Notice 2007-7. For a less conservative interpretation see
https://www.irahelp.com/forum-post/3394 ... -checkbook

Ron
The answer to question 41 is:

A-41. Yes. If a check from an IRA is made payable to a charitable organization
described in § 408(d)(8) and delivered by the IRA owner to the charitable organization,
the payment to the charitable organization will be considered a direct payment by the
IRA trustee to the charitable organization for purposes of § 408(d)(8)(B)(i).

It does not state who has to write that check. A "check from an IRA" can be written by the IRA custodian, or the IRA account holder.
IRS Pub. 590-B has similar wording about payment going directly from the IRA to the charity.
I have confidence in it. I am just reporting what the Vanguard rep told me. Everything I have seen says the money must come directly from the IRA. I have not seen anything that specifies who has to write the check.
InMyDreams
Posts: 1882
Joined: Tue Feb 28, 2017 10:35 am

Re: Can anyone help me find a solution to my QCD problem?

Post by InMyDreams »

Forbes uses the word "might" about giving checking. VG might not do it? Doesn't want to do it?
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