How can I enter a QCD amount for an RMD from an annuity that is a 403(b), not an IRA?

Forum|Forum|6 years ago
April 29, 2020
1 reply
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TurboTax doesn't seem to have a way to enter the QCD, since it didn't come from an IRA. But we have confirmed with the company that the QCD was done correctly.

TurboTax Online

D

dmertz

Employee

QCDs can only be made from an IRA, not from a 403(b). The distribution from the 403(b) is taxable and your charitable contribution made from the 403(b) will need to be entered as a Schedule A deduction in the Charitable donations section of TurboTax.

L

loisandartAuthor

Employee

Thank you for your answer, but that really surprises me. Just this morning my husband spoke with a rep. at the company who told him that the checks they wrote to several charitable organizations (at my husband's instructions) were qualified charitable distributions. That was the reason we did this last year. The rep. suggested we speak with a tax advisor, and I thought I'd try the TurboTax community first.

D

dmertz

Employee

He talked to an uninformed rep unless the rep was referring only to distributions that might have been from an IRA that your husband has. If your husband has no IRAs with that company, the rep was simply wrong.

To be a QCD, money would have to be rolled over from the 403(b) to a traditional IRA (normally after completing any 403(b) RMD for the year, but 2020 RMDs have been waived by the CARES Act) and then a QCD made from the IRA. Since 2020 RMDs have been waived, if QCDs are desired for 2020 any beyond, this might a good reason to roll the 403(b) over to a traditional IRA in 2020.