Checkbook IRAs and Last Minute Year-End QCDs

Under the rules governing QCDs, charitably minded clients can direct up to $105,000 in IRA funds to charity in 2024. The QCD funds will count toward the client's required minimum distribution for the year. Some IRAs give owners check-writing privileges. If that's the case, the owner can write a check and send the IRA funds directly to the QCD recipient-charity. However, clients should be careful when writing these checks. Because it's so late in the year, it's entirely possible that the charity might not cash the check until early in 2025. If that happens, the contribution won't count toward the individual's 2024 RMD. The check must actually be cashed by December 31, 2024 (delivery of the check by year-end is not sufficient). Checks cashed in early 2025 will also count toward the client's 2025 QCD limitation of $108,000. For more information on QCDs, visit Tax Facts Online. Read More: Link to Q3997. Note: Q is updated.