IRA Qualified Charitable Distribution

IRA Qualified Charitable Distribution

Forum topic posted in Forum on 2 March 2011| 4 comments
audience: | last updated: 2 March 2011
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Joined: 09/12/2001
Points: 45
A donor wishes to make a QCD to a qualified charity from an IRA that holds gold coins. Can the donation be made via transfer of actual gold coins directly from the IRA Custodian to the charity, or must the coins be liquidated and a check sent to the charity?

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Joined: 06/08/2006
Points: 30
Certain specifically-permitted precious metals
The code refers to a distribution as an amount of money and other property. Code section 408(m), Pub 590 and certain PLRs provide specific guidance on which coins and bullion are permitted in IRA accounts, and look to 408(d) on distributions. The distribution process from your donor's particular IRA will vary by custodian. The ones providing custody of the specifically-permitted precious metals tend to be sophisticated. A public charity can generally set up an account with the same administrator for the transfer, so it works but is a bit clunky and can incur a fee. The public charities that actively work with illiquid assets understand this fact and do not let a little clunkiness discourage them. Just because it's not easy doesn't mean it's not worthwhile.
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Joined: 10/16/2008
Points: 15
Why would affluent elderlies
Why would affluent elderlies use the IRA Qualified Gift rather than Long Term Cap Gain Gifts whether coins or cash? More efficient making gift from LTCG Asset and cashing in IRA. The LTCG gift offsets tax on IRA distribution allowing donor more useable cash, ability to buy back asset with higher basis or give even more to charity at no additional cost.
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Joined: 02/13/2006
Points: 15
IRA QCD
Last I heard, cash only was permitted under these rules and regulations.
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Joined: 12/23/1999
Points: 15
Gold Coins
I do not believe the rules relating to QCD's get this granular. It would seem to be the important value to establish, which with precious metals is always a moving target, is the exact value of the gold on the date of transfer. You should also make sure the coins are an asset the charity is willing to accept. You should also find out how they are going to value the gift for reporting purposes. The easy solution would seem to be to sell the coins in the IRA and then transfer cash to the charity.
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