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IRA /QCD Deposit by 12/31?

  • 1.  IRA /QCD Deposit by 12/31?

    Posted 12-29-2021 05:28 PM
    Our Planned Giving office has told the Gift Administration team any IRA gift checks we receive must be deposited by 12/31.  This is somewhat complicated because although we're processing right now, the cashier's office is closed, so we only are making a single special deposit on Friday for anything that can't wait (which are essentially the larger endowment gifts that our investment office wants to have for unitization.)   Putting other items into these deposits will make for a very messy bank reconciliation!  So I would like to avoid if it at all possible.

    Did something change this year with these types of gifts?  I think they are conflating the RMD withdrawal requirement date with our deposit date.   For example, since the RMD must be withdrawn by 12/31, therefore the RMD must be deposited into our account by 12/31??

    The IRA administrator would know when the check was cut, which then puts it out of the donor's control, and would meet the IRS requirements,  if I understand the process on that side.  Is that accurate?   

    Any guidance here, especially with specifics from the IRS, would be helpful!

    Thanks all, 

    _________________
    Aimee S. Fitzgerald, MLIS
    Executive Director, Advancement Services
    Office of University Advancement
    William & Mary
    asfitzgerald@wm.edu


  • 2.  RE: IRA /QCD Deposit by 12/31?

    Posted 12-29-2021 06:33 PM
    The rules have not changed to my knowledge.  The funds must be actually withdrawn from your account by the 31st.  Which typically means the deposit must occur by that date.

    I know this is somewhere in the archives.  But this link mentions the withdrawal date:

    https://www.fidelity.com/learning-center/personal-finance/retirement/qcds-the-basics

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 3.  RE: IRA /QCD Deposit by 12/31?

    Posted 12-30-2021 01:02 PM

    John, thanks for the speedy reply!  I found references similar to what you posted below, which is why I was thinking they (ie Planned Giving) is just saying that the check has to be deposited since the IRS rules only state that the funds have to be withdrawn.

     

    I did find a response you had posted last January about the mail delay, and you made the statement: The only gifts you have to worry about are IRA RMD payments.  If those are not issued directly by the financial institution, the checks must be cashed by December 31.  The same applies to QCDs if the donor wants the QCD to count toward their calendar year RMD amount.

     

    Where I am tying myself up in knots is the part about being issued by the financial institution – I suppose you mean versus the personal check-type things the donor sends in directly?    Because if so, and the financial institution made the withdrawal from the IRA account to issue the check, then we're in the clear, which is what I've been assuming all along.

     

    Sorry if I am being pedantic!

     






  • 4.  RE: IRA /QCD Deposit by 12/31?

    Posted 12-30-2021 01:29 PM
    It is my understanding that the issue pertains to when funds are irrevocably removed from the account.  However, I always think the best course of action is to contact the financial institution directly to confirm with them that the received payment will be regarded as a current year distribution regardless of when you deposit the funds.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 5.  RE: IRA /QCD Deposit by 12/31?

    Posted 12-30-2021 06:57 PM

    We had a donor contact us as well-they put their IRA check in the mail.  The University is closed this week-and since everything goes through the mailroom first, I literally have no way of accessing the mail.






  • 6.  RE: IRA /QCD Deposit by 12/31?

    Posted 12-31-2021 09:28 AM
    Interesting/glad to see this thread - I have been having this conversation with a donor off and on for the past week and a half. He says check was mailed Dec 1 and we had not received it as of Dec 22 and college is closed/no mail pick up until January 3. It's unclear who mailed the check - the donor or the financial institution. Something to look out for in the new year ...

    Associate Vice President, Advancement Operations

    Office of Advancement and Alumni Relations

    Guilford College

    Office: (336) 316-2352   Cell: (518) 522-8800