Age 70.5–removing IRA money

[iris lilies]

I’m starting a new thread because I don’t want people to have to wade through very old posts on this narrow topic.

I talked to Vanguard today about the mechanics of removing money from my IRA and giving it to a qualified charity. In a few months I will be able to take money from my IRA without incurring a taxable event and give to qualified charities.

The Vanguard representative described the process:

1. I let Vanguard know the amount I want to take out for each charity, name the charity, and name the fund I am taking it from in my account.

2. Vanguard sends checks to my home via snail mail, made out to each charity in the amount I have detailed.

3. I need to take photocopies of the checks for my tax records because Vanguard will send me a 1099 that is NOT detailed showing the distribution going to qualified charities.

4. I need to submit those photocopies to our tax preparation firm so as to not be charged a tax.

5. I mail the checks to the charities myself, sending a note however I like so that it’s obvious to them where the money is coming from.

[Tybee]

I’m starting a new thread because I don’t want people to have to wade through very old posts on this narrow topic.

I talked to Vanguard today about the mechanics of removing money from my IRA and giving it to a qualified charity. In a few months I will be able to take money from my IRA without incurring a taxable event and give to qualified charities.

The Vanguard representative described the process:

1. I let Vanguard know the amount I want to take out for each charity, name the charity, and name the fund I am taking it from in my account.

2. Vanguard sends checks to my home via snail mail, made out to each charity in the amount I have detailed.

3. I need to take photocopies of the checks for my tax records because Vanguard will send me a 1099 that is NOT detailed showing the distribution going to qualified charities.

4. I need to submit those photocopies to our tax preparation firm so as to not be charged a tax.

5. I mail the checks to the charities myself, sending a note however I like so that it’s obvious to them where the money is coming from.

Thank you for this. I was just looking this up today because I wanted to take shares from my IRA and put them in my donor fund, and it said I could not do it that way; I had to take them from my regular brokerage account. I think it is because I am not 70 1/2 yet.

[Tybee]

Why not set up a donor advisor fund? That way, you just switch the money to the daf, and then they do all the work--I just put what I want it to go to, and they send the letter and the checks, etc. I love mine. And when I die, it gets split between the two beneficiaries, my college and a college I donate to in South Dakota. It happens automatically, no probate. And I can change the beneficiaries at any time, so no need to write a new will.

For Vanguard:
Home | Vanguard Charitable (https://www.vanguardcharitable.org/)

[iris lilies]

Why not set up a donor advisor fund? That way, you just switch the money to the daf, and then they do all the work--I just put what I want it to go to, and they send the letter and the checks, etc. I love mine. And when I die, it gets split between the two beneficiaries, my college and a college I donate to in South Dakota. It happens automatically, no probate. And I can change the beneficiaries at any time, so no need to write a new will.

For Vanguard:
Home | Vanguard Charitable (https://www.vanguardcharitable.org/)

I don’t see any advantage to me to put it into a donor advised fund. As I understand it, once the money is in that fund it will always be controlled by Vanguard. That’s not what I want to happen.

I do not mind mailing the checks to the charitable organization, in fact,I want to include my own note.

But I would think there’s going to be a cost to Vanguard cutting these checks and mailing them to me. The person I talked to on the phone said there’s a $25 fee if they take the information by phone but there’s an online method for me to convey the information. But, there’s gotta be a cost them to cut the checks and mail them to me. We shall see. I doubt that cost is going to discourage me from doing it.

[Tybee]

I don’t see any advantage to me to put it into a donor advised fund. As I understand it, once the money is in that fund it will always be controlled by Vanguard. That’s not what I want to happen.

I do not mind mailing the checks to the charitable organization, in fact,I want to include my own note.

But I would think there’s going to be a cost to Vanguard cutting these checks and mailing them to me. The person I talked to on the phone said there’s a $25 fee if they take the information by phone but there’s an online method for me to convey the information. But, there’s gotta be a cost them to cut the checks and mail them to me. We shall see. I doubt that cost is going to discourage me from doing it.

With mine, once I move the money over, it belongs to my donor advised charitable fund and not me anymore, but I control how it is spent, and I select how to invest it, from certain preset options. So I am in a growth fund, and I decide to donate, as I did today, and I enter the information about where it goes, and they do the rest. So yes, I can't write a handwritten note although I can probably customise the letters that get sent.

But there is no fee for them to send out the grants. I give them instructions and they carry them out.

But I can see how you might want a more personal touch. I just know that this way, it will all get donated, and all I have to do is decide where and when. And it's not a chore, and I enjoy using it.

[nswef]

I have run into the problem that there is no note on the sent check to say who is is from...So I need to tell the broker to be sure it is on the check they send. I think they have a 3rd party doing the distribution and that's the problem.

[iris lilies]

I have run into the problem that there is no note on the sent check to say who is is from...So I need to tell the broker to be sure it is on the check they send. I think they have a 3rd party doing the distribution and that's the problem.
Thanks for saying this this because I knew I’d read it somewhere and now probably from you that the broker sent the money but the charitable organization didn’t know who it came from. That was one of my reasons for maintaining control over it.


I do think I will find out that that “control “costs a dollar amount but that’s fine with me.

[Tybee]

Thanks for saying this this because I knew I’d read it somewhere and now probably from you that the broker sent the money but the charitable organization didn’t know who it came from. That was one of my reasons for maintaining control over it.


I do think I will find out that that “control “costs a dollar amount but that’s fine with me.


That is odd, that that happened to you, nwsef. I get copies of everything they send (use Schwab) and have never had any problems, and even though it's a daf, the thank you notes come to my address and acknowledge. So I can just go to my account and see exactly what was sent, and it's always got the name of my fund on it, in the granting letter. Maybe the organization separated the check from the granting letter? I haven't actually seen the checks. Hmm.

[sweetana3]

Our Charles Schwab IRA sends separate 1099s for the QCD amount(according to hubby who handles this). Not sure why Vanguard does not do the same thing. We have a checkbook for each of us to use to send donations to our organizations from our IRA accounts.

[Tybee]

Our Charles Schwab IRA sends separate 1099s for the QCD amount(according to hubby who handles this). Not sure why Vanguard does not do the same thing. We have a checkbook for each of us to use to send donations to our organizations from our IRA accounts.

That's cool, and sounds easy.

[iris lilies]

Our Charles Schwab IRA sends separate 1099s for the QCD amount(according to hubby who handles this). Not sure why Vanguard does not do the same thing. We have a checkbook for each of us to use to send donations to our organizations from our IRA accounts.

Yes, it’s too bad that Vanguard does not do what Schwab is doing.


I do have a checkbook for my Wells Fargo account, but it’s not wise to take money out of the Roth there. Soon, I won’t have to do that reaching age 70.5.