FundSvcs Community

We received an IRA contribution via an IRA checkbook (self directed) on 12/31/18 (mailed/postmarked 12/28) that was deposited at the bank in 2019. The donor is indicating this will not count toward her required distribution for 2018 since it was not deposited until 2019 (based on her delivery date we couldn't have deposited for 2018 anyway). At any rate, I am not overly familiar with self directed IRAs and different rules for these but believe the donor may be correct. Anyone with more experience here? Thanks. Kevin S. Nunnally Associate Vice President for Advancement Services The University of Alabama

The donor is correct (as far as IRAs are concerned). See the archives for an earlier discussion on IRA timing issues. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Fri, Jan 25, 2019 at 1:41 PM Kevin S. Nunnally <knunnally@advance.ua.edu> wrote: > We received an IRA contribution via an IRA checkbook (self directed) on > 12/31/18 (mailed/postmarked 12/28) that was deposited at the bank in 2019. > The donor is indicating this will not count toward her required > distribution for 2018 since it was not deposited until 2019 (based on her > delivery date we couldn't have deposited for 2018 anyway). At any rate, I > am not overly familiar with self directed IRAs and different rules for > these but believe the donor may be correct. Anyone with more experience > here? > > Thanks. > > Kevin S. Nunnally > Associate Vice President for Advancement Services > The University of Alabama >

No. Not providing tax advice and never do. She's upset we didn't deposit. I'm simply trying to confirm that is a provision for self-directed IRAs--that the check must clear the bank before 12/31.

We've recently run into this issue ourselves, and we'd not heard or encountered it before. In our case, we could not easily tell the IRA check apart from other checks. Had we'd known, we would have made a more concerted effort to deposit it early, (but even then we are dependent on our finance department once we hand it over...) On Fri, Jan 25, 2019 at 10:52 AM Kevin S. Nunnally <knunnally@advance.ua.edu> wrote: > No. Not providing tax advice and never do. She's upset we didn't deposit. > I'm simply trying to confirm that is a provision for self-directed > IRAs--that the check must clear the bank before 12/31. >

Is she asking you to create a fraudulent tax receipt? Tell her no. This is a question for her tax advisor, not you. IMHO. I try very hard not to give anything resembling tax advice to donors. Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu           Please consider the environment before printing this email. Confidentiality Notice:  This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited.
Original Message----- From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Kevin S. Nunnally Sent: Friday, January 25, 2019 1:41 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] IRA Checkbook Year End Gift We received an IRA contribution via an IRA checkbook (self directed) on 12/31/18 (mailed/postmarked 12/28) that was deposited at the bank in 2019. The donor is indicating this will not count toward her required distribution for 2018 since it was not deposited until 2019 (based on her delivery date we couldn't have deposited for 2018 anyway). At any rate, I am not overly familiar with self directed IRAs and different rules for these but believe the donor may be correct. Anyone with more experience here? Thanks. Kevin S. Nunnally Associate Vice President for Advancement Services The University of Alabama