Reply To: Can Surrendered IRA Life Insurance Annuity QCD?

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#5040
Alan S.
Participant

It is likely an IRA, so you should be OK. Sec 408b is actually titled as “Individual Retirement Annuity” which is an IRA with an insurance company invested in an annuity product. The 1099R is not an indication because you would not get a 1099R with either an IRA or a non qualified annuity until you actually took money out of the account. You will get a 1099R for the surrender next month and if the entire contract balance was sent directly to a qualified charity and you are at least 70.5, you would be able to report a QCD on line 4a and 4b of your Form 1040 tax return, like you did before. In other words, you report the QCD yourself as the 1099R will not make any reference to a QCD or an RMD, it will just show the amount distributed.

If you have multiple IRA accounts, be careful in timing your distributions if you are doing QCDs. To be safe, you should do the QCDs first, not after you have already completed your total RMD for all accounts.