[ quote fixed by admin LadyGeek]I asked Fidelity about the 1099 reporting issue and the only guidance I got was we don't need to do anything differently than we do now. That suggests they have a plan (or hope to develop one) for coding customer written checks. Hope that continues to be true in the future.One thing I like about writing checks from my Fidelity IRA is that I get an alert when a check is cashed. The images (front and back) of the check are available online. I always write "QCD" in the memo.
But... I am a bit concerned about how Fidelity will code the QCD distributions and how I will handle the discrepancy between what I report and what the 1099 reports.
Whether you write your own QCD checks or the custodian writes them, we won't know for sure how effective IRA custodians will be in properly coding the 1099R forms until they are issued in January.
Nor will we know how the IRS will react when a taxpayer claims a QCD on their 1040 when that QCD was missed by the custodian. I expect that because the IRS gave insufficient lead time to custodians with respect to the 1099R coding requirement, that they will end up treating 2025 QCDs just like they did prior to 2025, with 2025 being a transition year.
Statistics: Posted by Alan S. — Sun Sep 21, 2025 1:35 pm — Replies 49 — Views 4654