You are bringing up a four-year old thread, fwiw. First, you must wait until you are 70.5 to start QCD's (they are not available merely in the year you turn 70.5 years, you must be that age or older to make them). That will be later this year, if you just turned 70.Ok, Thank you sooo much, I just turned 70 and was deciding between a DAF in my local Community Charity, and use my TIRA at VG but did not know who easy it was. Do I have it correct then when I recieve my 1099-R the QCD is zeroed as a taxible income above the line?It's easy at Vanguard. I have made donations as small as $50 and I believe that there is no lower limit. At Vanguard, I click on the link for withdrawals and select a paper check. The system asks if it is QCD. I click on yes, and type in the name of the charity. The system asks how much in taxes to be withheld, and I enter none. Vanguard prepares a check made out to the charity and mails it to me. I then mail it to the charity with any other information I wish to include. My only extra cost is the stamp I use to mail the envelope to the charity.One tiny, tiny nit about a QCD vs. DAF.
I know that it's easy to give nominal amounts (say, $100) to charities from a DAF. All that I need to do is get on the Fidelity DAF website or app, and it can be done in 30 seconds if it's a charity that I've given to previously.
Is it as easy to give those nominal amounts from a DAF? Does the tIRA custodian balk at this, or impose fees?
I ask this as someone who has a DAF, but has no personal experience with QCDs. I agree that there are a lot of advantages of QCD giving rather than DAF once a person is over the necessary age.
Second, you have to account for QCD's yourself on your tax return. The financial institution (Vanguard or anyone else) does not do this for you on the 1099-R. Edit: this thread describes how to do it on the tax return (viewtopic.php?t=420233)
Statistics: Posted by Geologist — Fri Mar 08, 2024 4:17 pm — Replies 55 — Views 3540