1099r

[fliszt]

My client withdrew $6,000 from IRA in Dec 2007 and had Wachovia Securities send it directly to a church. Wachovia issued a 1099R showing code 1 standard distribution. I asked Wachovia to correct 1099R since it was a direct contribution to charity. They told me no, the 1099R is corrrect as is. Are they correct?

[Peachie]

Here's what I think

My client withdrew $6,000 from IRA in Dec 2007 and had Wachovia Securities send it directly to a church. Wachovia issued a 1099R showing code 1 standard distribution. I asked Wachovia to correct 1099R since it was a direct contribution to charity. They told me no, the 1099R is corrrect as is. Are they correct?

The taxpayer made an early withdrawal--it appears to me--subject to a 10% penalty, if other criteria not met. Didn't matter that it went to the church. He has never paid taxes on the money--correcf? Am I missing something here?

Peachie

[fliszt]

Thanks for reply Peachie

You're right for a straight withdrawal. This client is 76 yrs old and has a RMD. I found my answer in Intuit's help section a few moments ago. If a client makes a direct charitable contribution as her RMD it is so noted on the 1040 as a withdrawal, but not taxable. A QDC is entered on line 15a.
I'm sorry for the post. I should have done my homework a little better.
Thanks
Larry