Bri Posted December 30, 2020 Posted December 30, 2020 Hi folks Our 1099 coordinator had asked me to confirm that an RMD was processed for a DB plan participant. Turns out the participant elected a full PVAB distribution as a lump sum so that the DC method could be used. The non-RMD went to his IRA. The RMD check was paid directly to a charity. Am I forgetting any issues with that? The plan still does a code 7 for the RMD portion, right? thanks. -bri
Lou S. Posted December 30, 2020 Posted December 30, 2020 I thought direct charitable contributions of RMDs was only allowed from IRAs and not qualified plans? Am I missing some change?
Bri Posted December 30, 2020 Author Posted December 30, 2020 That's what alerted me to check around. Yeah, I couldn't find anything either. This'll be fun to explain to the advisor who ordered up the check tomorrow.
Effen Posted December 31, 2020 Posted December 31, 2020 It looks like it is only an IRA thing, 408(d)(8) (B)Qualified charitable distribution: For purposes of this paragraph, the term “qualified charitable distribution” means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p))— Bri 1 The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
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